Councils told debt write off depends on stock transfer

Debts totalling £2 billion owed by four Scottish councils
are to be written off by the Treasury, but only if they agree to
transfer their housing stock to an independent management
agency.

The four councils involved are Glasgow Council, Argyll and Bute,
Dumfries and Galloway and Borders. Glasgow alone has over £900
million worth of housing debt costing £50 million per year in
interest payments.

The announcement has been met with dismay by campaigning groups
particularly in Glasgow where the proposed transfer of the 81,000
council houses will be subject to a vote by tenants in November.
Campaign groups against the proposed transfer have argued that the
debt could be written off without the transfer of stock.