Birmingham City Council has played down concerns over its ability to cope with rising debt levels after the authority revealed it was £2bn in the red at the end of the last financial year. The council's finance scrutiny committee heard last week its rising debt level means the authority could pay £270m a year in repayments by 2013/14. Birmingham's debts have increased following the introduction to local government of the 2004 'prudential borrowing' regime, which has been used to fund a city-wide social housing improvement programme, the new civic library and a major regeneration project around New Street Station.
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