28/03/2026
WHO WANTS TO JUMP INTO BED WITH BLACKPOOL? LABOUR'S LOCAL GOVERNMENT SHAKE-UP MEANS OUR NEIGHBOURS COULD END UP PAYING FOR DECADES OF FINANCIAL MISMANAGEMENT ON THEIR DOORSTEP
Blackpool Council is carrying £570 million of debt. It spends £25 million a year just on the interest. And now the Labour government wants to redraw the map of local government across England, which means our neighbours in Wyre and Fylde could be forced into a merger with us and handed a share of that bill. As Blackpool residents, we should be angry about what's been done to our town's finances. And our neighbours deserve to know the truth before any decisions are made.
THIS IS WHAT £570 MILLION LOOKS LIKE
Five hundred and seventy million pounds. That's what Blackpool Council owes. Not what it spends on services. Not what it invests in the town. Just the debt. The money it borrowed and hasn't paid back.
On top of that, the council pays around £25 million every single year just in interest. That's £25 million that never mends a road, never pays a care worker, and never improves a park. It's gone before it can do anything useful for anyone living here.
Some of that interest goes a very long way from Blackpool. A chunk of the council's debt comes from something called LOBO loans, which were sold to councils across the country in the early 2000s by banks chasing profit. The deals were dreadful for councils and great for the banks. Blackpool's LOBO loans ended up in the hands of a German state bank called FMS Wertmanagement, which was set up specifically to wind down toxic financial assets left over from the 2008 global banking crash. In June 2025 alone, Blackpool Council sent over £5 million to that German bank in a single payment. Blackpool residents' money, heading to Frankfurt, to service a debt that should never have been taken on.
And the reserves? At one point they dropped to just £76,000. For a council managing a budget of hundreds of millions, that's terrifying. It's the equivalent of a household with a £50,000 mortgage having 7pence in the savings account.
LABOUR DID THIS
Labour has run Blackpool Council for years. These aren't accidents or bad luck. These are decisions. The LOBO loans were signed off on their watch. The reserves were run down on their watch. The £25 million a year draining out of Blackpool is happening on their watch, right now, today.
We're not a wealthy town. Blackpool has some of the highest levels of deprivation in the country. Our residents need good services, decent housing, and a council that fights for them. Instead we've got a Labour council that's spent years digging a financial hole so deep it now costs £25 million a year just to stand at the bottom of it.
SO WHAT HAPPENS NEXT?
Labour in Westminster is pushing ahead with local government reorganisation across England. The plan is to create bigger unitary councils by merging smaller ones together. The Fylde Coast is in the frame. That means Blackpool could be merged with Wyre and Fylde, two councils that are completely debt free and in good financial health.
Wyre has no external debt and around £42 million in usable reserves. Fylde has no debt either and is forecasting a surplus. These are well run councils. And their residents would be dragged into a new merged authority carrying Blackpool's £570 million liability, a liability they had absolutely nothing to do with creating.
Labour Leaders in Blackpool are rubbing their hands with glee, the offramp is on the horizon for the financial mess theyve landed us in.
And here's the thing that should concern every Blackpool resident too. When Labours merger plans go ahead the people who've been failed by Labour's management of this town could end up with even less power in a bigger, more remote council dominated by someone else's priorities.
REFORMLIMITED/FARAGEPLC WON'T FIX THIS EITHER
ReformLimited/FaragePLC will tell you they're the answer. But shouting about waste from the sidelines isn't a plan. They've shown no serious understanding of how council finances work, what LOBO loans are, or what a merger on these terms would actually mean for Blackpool residents. Protest votes feel good. They don't rewrite loan agreements or recover £570 million.
WHAT BLACKPOOL ACTUALLY NEEDS
Blackpool needs leaders who understand the town's finances well enough to challenge them. Who can read a treasury management report, ask the right questions, and hold Labour accountable for what's been done to this town's money.
We need a proper voice. One that puts Blackpool residents first, not one that's part of the same Labour network that created this mess, and not one that's chasing national headlines while the details get decided behind closed doors.
The Conservatives are calling for full transparency on what any merger would mean for Blackpool's existing debt, for residents' council tax bills, and for the services people here actually rely on. These questions need answers now, before boundaries are drawn and deals are done.
Because once it's decided, it's decided. And Blackpool's already paid enough for other people's bad decisions.