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South Northants Council loans NCC £2m

Interviewed by the BBC, Councillor Chris Lofts, Liberal Democrat Leader at SNC, expressed his concerns: “I was surprised and disappointed to learn SNC had made this loan. The financial disaster at NCC has been well documented and many local authorities might well be questioning the wisdom of lending this failed Tory-run council public money.”

An investigation by BBC Look East has revealed that South Northamptonshire Council has loaned £2m to Northamptonshire County Council. The loan was made despite Northamptonshire County Council being in financial crisis.

Interviewed by the BBC, Councillor Chris Lofts, Liberal Democrat Leader at SNC, expressed his concerns: “I was surprised and disappointed to learn SNC had made this loan. The financial disaster at NCC has been well documented and many local authorities might well be questioning the wisdom of lending this failed Tory-run council public money.”

Conservative led SNC were themselves criticised recently by Independent Auditors Ernst and Young who raised concerns over the way the council made a loan in 2017 to the Silverstone Heritage Experience.

Liberal Democrat Councillor Martin Johns commented: “It is common practice for local authorities to make short-term loans to one another but I think the public in South Northamptonshire will be surprised at this decision, given the total mess the Conservatives have made of running the county council. Only days ago, Anne Longfield, the children’s commissioner for England, warned that she was “extremely worried that the financial difficulties that Northamptonshire County Council are facing, will mean that they are not going to be protecting the services for the most vulnerable children, which could have catastrophic consequences for those children.”

The Audit Committee at SNC has been asked to look at the NCC loan. Councillor Chris Lofts, a member of the committee, explained: “I have asked that an investigation be carried out into the NCC loan. This is public money and South Northants Council should have recognised the sensitivity of this loan of £2m to NCC and made clear to the public its intention to make the loan.”

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Comments

peter k

At 12:52 on 11th August 2018, peter k commented:

Yup, a sign of things to come.

Unless central government reverses its previous decision to stop fully funding local councils to their local needs, it will inevitably fall to the wealthier councils to prop up those with less income from local sources.

How will South Northants and Daventry fare when tied to Northants?

Interesting times...................

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Observer

At 19:28 on 11th August 2018, Observer commented:

Having read this I immediately went into Victor Meldrew mode - “I don’t believe it”
SNC money (our money) is being loaned by decision of SNC Council. Did we (voters) give them this authority?
A purely political decision which I suspect is not supported by Conservative voters.
Or perhaps I am wrong and there will be supportive postings of this ridiculous decision.

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caz

At 20:14 on 15th August 2018, caz commented:

I think it is appalling that SNC has loaned money, paid by local taxpayers, to a council that has mismanaged their own budget in such an inefficient or even chaotic manner.
I fervently hope that our council tax will not be rising to accommodate this irresponsible foolishness.
there has been no consultation on the matter and presumably when we merge with Northampton in the re-organisation fiasco, the loan will be quietly shelved and the debt conveniently forgotten.

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