Lido, city centre or Youth Zone? Peterborough Council asks residents which projects they would be happy to see the authority's debt increase to deliver
Peterborough residents are being given a choice of projects they would be happy to see the council increase their debt by to deliver.
The City Council released it’s budget consultation last week, as they look to balance the books and deliver vital services in Peterborough.
Residents are being asked to complete a survey giving their views about the proposals put forward by the authority
Perhaps the most eye-catching part of the consultation was the proposal to increase council tax by 4.99 per cent – the maximum increase they can impose without a referendum.
But also included in the proposals is a question asking residents which projects they would like to see delivered – with the proviso that it would also increase the council’s debt.
What options are residents given in the survey?
The consultation gives residents a choice of five options:
Carry out essential maintenance and refurbishment of the Lido
Develop a Youth Zone on the Embankment
Support the ongoing regeneration of the city
Investment in the city centre, including redeveloping the Guild Hall
Prefer not to borrow money for any
How much debt does the council have – and how much does it cost the authority to pay it back?
In the budget consultation document, the council says: “As at the end of March 2026, our level of debt stands at £486m - a reduction of £41m, down from £527m in March 2025. Despite the
improved position, the level of debt held by the council remains high and puts considerable pressure on our revenue budget- costing in the region of £40m annually, of which circa £20m is provision for debt repayment.”
The consultation adds: “As part of our budget consultation survey we are asking you if you are supportive of the council taking debt for key investments or to save money in the future, and thereby budget for the money we spend on repaying that new debt, to be able to invest in regeneration and new assets.”
What do we know about the proposed projects?
No further details about most of the proposals have been given in the documents.
However, The Peterborough Telegraph has reported on the proposed Youth Zone at the Embankment.
The project would cost £13 million, and would provide safe places to socialise, play sports, learn skills, get support, and take part in activities outside school hours if given the go ahead.
A centre would be built on land near the Key Theatre, and would be operated by OnSide.
Peterborough Lido held 100th anniversary celebrations this year, and the facility is one of the most loved in the city – especially with the new Regional Pool centre still years away from completion.
It had £90,000 covers installed at the start of the season, in a bid to reduce the cost of heating the water.
In 2024, the future of the outdoor pool was questioned in the budget consultation, with a proposal to mothball the facility – however, those proposals were axed after a public outcry.
Built in 1671, Peterborough’s Guildhall is located at the heart of the city centre – but while it played an important civic role in the past, now it is barley used – other than as a stage for some events, and to hang Christmas lights on.
The Peterborough Telegraph was given access to see inside the historic building earlier this year – and there have been ideas put forward to make more use of the listed building.
What is the council’s financial position?
The council spends approximately £580 million a year on running and delivering services.
However, with rising demand and costs increasing significantly since March in Children's Services in particular, and Adult Social Care, there is now a budget pressure of £7.4m in 2027/28. This has also put a strain on the current year budget, with the council now reporting an £8.9m overspend.
Councillor Mohammed Jamil, Cabinet Member for Finance and Corporate Governance, said: “In recent years we have strengthened financial controls, brought services back in-house, reduced debt and delivered annual savings of £15m–£20m. Earlier this year an independent CIPFA review recognised this progress as well as the pressures that remain, particularly in areas such as Children's Social Care.
“Our Government is listening, with the Fair Funding Review introduced in April, better reflecting Peterborough’s growing population, deprivation, service demand and limited scope to raise council tax income. This means our Government funding will rise substantially over three years, however rising demand and costs in Children’s Services and Adult Social Care are absorbing much of that extra funding.
"As a result, we are facing a budget gap in 2027/28 and therefore need to make careful choices about where money is spent. Our focus remains firmly focussed on prevention, demand management and designing new ways of providing services, such as using new technology, AI and data, which can improve the services that we offer and reduce our operating costs."
Councillor Shabina Qayyum, Leader of Peterborough City Council, said: “The council has faced financial challenges for more than a decade because of historic underfunding, low reserves, high debt and rising demand for essential services.
"As set out when I became Leader of the Council a little over a year ago, one of my main priorities was to ensure we moved forward on a more stable financial footing. We are now getting more funding from Government than we have ever seen before, but demand is still much higher than we can achieve within budget.
"We are taking steps to move towards financial sustainability, including finding innovative ways to reduce demand, but in the meantime we have to bridge this difficult financial period.
“It's really important that residents’ views help shape our decisions on how we meet this challenge. So please, take the time to read through the budget consultation document and complete the survey, telling us which services you value the most and how you think we can meet the challenge."
How to have your say
You can have your say via on online survey, which is available at www.peterborough.gov.uk/budget-consultation. Hard copies of the survey can be requested via email to [email protected] or calling 01733 747474.
The consultation runs until Tuesday 8 December.