A council leader has called on the government to clear more than £1 billion of debt owed by authorities in Staffordshire ahead of local government reorganisation.

Jonathan Gullis, leader of Newcastle-under-Lyme Borough Council, says it is vital that the new unitary authorities being 'foisted' on Staffordshire are allowed to start their existence debt-free, to ensure their financial sustainability.

Newcastle, Stoke-on-Trent and the Staffordshire Moorlands will be covered by the new North Staffordshire unitary, under the government planned overhaul of local councils.

The government has previously said there are no plans to address existing council debt centrally, meaning it is set to be transferred to the new authorities.

According to government figures, Stoke-on-Trent City Council has £783 million of outstanding debt, most of it owed to the Public Works Loan Board as a result of capital spending. The city council has also received nearly £70 million in emergency bailout loans in recent years.

Cllr Gullis raised concerns over the debt issue as cabinet members at the borough council were given an update on local government reorganisation (LGR).

He suggested the transferred debt could result in tax hikes for Newcastle residents, or council-owned land in the borough being sold off.

Cllr Gullis said: "I do fear for the financial viability of this new authority, with that debt straight out of the gate.

"I intend to write to all council leaders within the proposed North Staffordshire area to see if they will join with me, along with all the local MPs, to send a very clear message to government, that if they are foisting this upon us, the debt must be cleared. They must give this new council a chance to start from a debt-free position."

Government figures show that Staffordshire County Council has £340 million of debt, while the Newcastle and Staffordshire Moorlands councils have £8 million and £12.1 million respectively.

At Reform UK-led Newcastle Borough Council there remains strong cross party opposition to the planned 'merger' with Stoke-on-Trent.

The council is currently looking into whether there are grounds to seek a judicial review on the government's decision – other councils, including Essex County Council, are already taking this action.

Monitoring officer Olwen Brown told the cabinet meeting that legal advice would be obtained before a special full council meeting on LGR on 2 September.

Cllr Gullis added: "I think it was a dark day and a stain on the 850 years of this loyal and ancient borough to have a decision in Westminster foisted upon the people of Newcastle-under-Lyme borough, who made it very frank that they were not invested in it.

"Even more sickening for me is that the Secretary of State who signed off on this decision, knew that he was on the way out of the door, and it was obvious that a new Prime Minister was about to enter the doors of 10 Downing Street."

Andrew Fisher, cabinet member for residents' services and neighbourhoods, said: "It was a shocking announcement and the timing was just absolutely abysmal."

The government says that the LGR proposals for Staffordshire, which will see the 10 existing councils replaced with two unitaries covering the north and south of the county, will save money and lead to more effective services.

Elections to the unitaries are planned to take place in May 2027. The new authorities will then take over from the existing councils in April 2028.