TAXPAYERS are paying £4m in interest a year to the government for a deficit. 

BCP Council’s education deficit on its Dedicated Schools Grant (DSG) is forecast to be £116.5million by this date, with a predicted net position for council finances of a deficit of £63.2million. 

However, in paying back the government, a council meeting heard the interest BCP Council is having to pay back is £4m a year. 

This will continue to be the case unless the new Labour government writes the interest off or agrees to reduce it. 

Jeff Hanna, cabinet member for transformation, described the numbers as “staggering” and questioned if the council is pressing the government for an “urgent meeting” to get the matter resolved. 

He said: “That is £4m a year that could have helped us in terms of savings that did not need to be made. 

“It’s going to be the same in future years if this situation is not addressed. It could be spent for the benefit of the residents rather than interest payments.” 

Deputy leader Millie Earl said the dedicated schools grant is a “looming issue” facing all authorities nationally. 

She said: “We are in a position now where we have a new government, new councillors and we will need to ensure they are entirely informed of this issue. 

“We can’t deal with this on a local level and we need [the government] to recognise that because it isn’t going to take government intervention to manage that.”