PLANS to increase Bromsgrove District Council's borrowing limit by £6million have been described as 'illegal' and 'dangerous' by opposition members.

Cabinet put the proposal to full council at a meeting at Parkside on June 21, suggesting the authorised borrowing limit for the financial year be upped to £21million to pay for the council's 'day-to-day running costs'.

The operational borrowing limit would also be increased from £12million to £18million.

The loan would make up for some £6.6million recently paid upfront to Worcestershire Pensions Fund in exchange for a £411,000 discount over the next three years - a deal council leader Geoff Denaro described as 'great value for money'.

But Labour and Independent councillors condemned the plans, with Cllr Charles Hotham demanding a breakdown of the alleged savings over claims the figures did not add up when taking interest rates into account.

Labour group leader Luke Mallett said: "It really comes to something when the council, which used to have £24million in the bank 12 years ago, has to increase its borrowing limit to £21million.

"This Conservative-led council has squandered money - even to pay for the most basic things this council has turned to borrowing.

"This Labour side will not sign off on blank borrowing cheques. I will not place this council jeopardy to make a potentially-illegal decision in the absence of all the necessary information.

"If our request is ignored and this is approved tonight, not only will I take this to our legal advisors but I will refer it to the government ombudsman in the morning."

Executive director of finance and resources Jayne Pickering was unable to confirm whether the council would run out of money, if the motion was deferred, before the next full council meeting in July.

Cllr Denaro insisted the plans were 'necessary' but called a recess for all Conservative councillors to meet outside the council hall.

On returning, Cllr Denaro agreed to accept a deferral with delegation to group leaders.

Speaking after the meeting, Ms Pickering said: "I did not have the detailed cash flow figures for the following month to hand so was hesitant to give confirmation on the level of borrowing required.

"However I am sure that when I meet with the Leaders the appropriate decision will be made with all of the detailed information available."