Oldham council accused of ‘irresponsible’ spending in £40m borrowing hike

A row has broken out in Oldham over the council’s spending record, with those running the town hall accused of being ‘irresponsible’ with money.

The claim was aimed at the amount of borrowing by the Labour-led council, and how it has budgeted major projects such as the restoration of the Old Library off Union Street, and the redevelopment of Spindles shopping centre.

Oldham council’s deputy leader hit back saying the accusations are ‘misleading’.

It comes after a report showed that net borrowing has gone up by £43m between March 2024 and 2025, from £144m to £187m.

Coun Sam Al-Hamdani, from the Lib Dem opposition group, said: “The Labour administration has tied itself to extensive borrowing over the next few years, and this is just the start.

“Borrowing is always a risk, and the council has a track record of bringing in major projects considerably over budget – the latest two being the Old Library project and the Spindles.

“The Library was originally budgeted at around £16m, and it has come in at over £30m, and the Spindles at £69m is currently over £80m.

“If you can’t bring in projects within budget, it is irresponsible to commit to even more spending, all paid for on the tick.”

The council’s deputy leader and cabinet member for finance, Coun Abdul Jabbar, slammed the claims as ‘incorrect’.

“Initial phases of both projects have been delivered within their allocated budgets,” he told the Local Democracy Reporting Service.

“Since then, they have been expanded in scope, with new budgets established, which have undergone robust governance processes that are in place for the delivery of capital projects.”

The deputy leader added that the hike in net borrowing is in line with Oldham council’s spending programme for the period.

“The report also highlights that the council’s capital financing requirement is £336m and its authorised limit for borrowing is £350m, and the existing borrowing is well within these limits.

“These projects are already proving to be a huge success, which we will continue to build on so that residents can benefit from them for years to come.”

The Old Library is set to reopen later this year after shutting its doors in 2017 due to its deteriorating condition.

It will be brought back into use as Oldham’s new town hall thanks to the multi-million pound project.

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