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    Technical Notes 2025, Issue 221 - Debt to Revenue Costs Update

    • Report by:

      Ann Davie, Chief Executive

    • TN Number:

      221-25

    • Subject:

      Debt to Revenue Costs Update

    • Responsible Officer:

      Jamie Robertson, Chief Finance Officer, Executive Officer – Finance & Digital Services

    • Publication:

      This Technical Note will be published on the Council’s website following circulation to Members. Its contents may be disclosed or shared outwith the Council.

    • At the meeting of Council on the 2 October 2025 the Council’s Chief Finance Officer committed to provide Members with analysis of Housing Debt as a percentage of housing rental income.  This was recorded on the Outstanding Business Statement (Item 978) with an update provided to Council on the 18 December.
    • This information is otherwise available to Elected Members via the Local Government Benchmarking Framework with this analysis forming part of the Financial Sustainability Suite of Indicators.  This information is available at the following link with the updated 2024/25 information now being included.
    • The information included for the Council sets out the following pattern of debt charges as a proportion of Housing Revenue Account debt.
    A graph showing the cost of revenue
    A graph showing the cost of revenue

    FNSUS04 - Ratio of financing costs to net revenue stream - Housing Revenue Account

    FNSUS04 - Ratio of financing costs to net revenue stream - Housing Revenue AccountFNSUS04 - Ratio of financing costs to net revenue stream - Housing Revenue Account
    Year Local Authority FG Average Scotland

    2013-14

    53.6%

    34.1%

    25.9%

    2014-15

    15.7%

    26.7%

    24.1%

    2015-16

    15.7%

    26.1%

    24.8%

    2016-17

    14.7%

    24.0%

    24.4%

    2017-18

    19.2%

    24.2%

    23.6%

    2018-19

    7.7%

    21.7%

    22.8%

    2019-20

    8.4%

    21.9%

    22.6%

    2020-21

    6.8%

    23.1%

    22.9%

    2021-22

    6.5%

    21.5%

    22.6%

    2022-23

    9.0%

    22.5%

    21.8%

    2023-24

    15.3%

    28.5%

    20.0%

    2024-25

    18.7%

    31.3%

    20.7%
    • The data shows that the cost of Debt within the Housing Revenue Account is rising more quickly (by 3.4% in the last year) than both the Scottish Average (0.7%) and the family group (2.8%). In overall terms the cost of debt remains below both the Scottish average (20.7%) and the family group (31.3%).
    • The rates of debt are expected to rise both at a Council level and across Scotland as housing remains a priority, with borrowing being the main recourse to funding future investment. This increases debt payments and the percentage of income that is then required to service that debt. 
    • Current rates are higher in areas such as Midlothian (42.8%) and West Dunbartonshire (50.4%) with full analysis now available at the above link. These rates are inextricably linked to their history of investment and ongoing commitments to maintain their housing stock.