COUNCILLORS at Bromsgrove District Council are no longer seeing red after the authority settled a £1.5m loan, making the authority debt free.

The council cleared the long-term loan, which was reduced by £101,000 due to prompt payment, after loans had accumulated through housing projects, leisure services and car parks.

"I am delighted we are now debt free," said council leader, Councillor Nick Psirides.

"It also means we can now spend all the capital receipts coming in, such as the sale of council houses and other council assets. Before, we could only spend 25 per cent due to Government restriction.

"This is good news."

Andrew Fisher, head of financial services, said the money had been paid back because of good housekeeping and financial management.

"The council is now able to declare itself externally debt free," he said.