Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

GOVERNMENT WRITES OFF HUMBER BRIDGE DEBTS

  • Comment
The government will write off£62m in debts built up by the local authority-run Humber Bridge, and temporarily redu...
The government will write off£62m in debts built up by the local authority-run Humber Bridge, and temporarily reduce interest charges on a further£359m of loans, the Financial Times reports (p10).

The bridge, linking Hull on the north bank of the Humbar Estuary with Barton on Humber on the south, has never attracted the volumes of traffic forecast because of the building of another bridge upstream at Goole and the failure to carry out proposed developments on the estuary, the paper says.

The fixed interest charges will be brought into line with current rates and interest charges on£240m of debt will be suspended.

Sunday Business (5 July, p7) reports that the bridge was scheduled to cost£28m 30 years ago and is£421m in debt because interest on the government loan that financed it rolls up faster than people pay to cross the river. Tolls contribute£14m a year, while interest charges exceed£40m.

The debt would be well over£500m if the previous government had not stopped demanding the uncovered interest five years ago. Now the government is to write off£62m of debt, suspend collecting interest on another£240m and cut the rate on the last£119m from 11.6% to

7.75%.

  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.