Council concerned over low level interest rates

COUNCILLORS are looking at ways of making efficiencies to cope with the lowest interest rates in history. North Herts District Council (NHDC), which had warned only a month ago that jobs might be at risk if interest rates fell further, now says it is look

COUNCILLORS are looking at ways of making efficiencies to cope with the lowest interest rates in history.

North Herts District Council (NHDC), which had warned only a month ago that jobs might be at risk if interest rates fell further, now says it is looking at the budget for 2010/11 after the Bank of England slashed interest rates today (Thursday) by a further 0.5 per cent to 0.5 per cent.

Councillor Terry Hone, NHDC's deputy leader and portfolio holder for finance, said: "We have budgeted prudently and had already anticipated this rate reduction when setting our budget for next year, 2009/10.

"However, we have concerns over how long interest rates will remain at the current low level and we are already looking at the following year's budget to identify efficiencies.

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