FINANCE

Leicestershire CC recovers £5m loan from struggling Northants

Leicestershire County Council has recovered its £5m loan to cash-strapped Northamptonshire after concerns the latter would not be able to repay the money.

Leicestershire County Council has recovered its £5m loan to cash-strapped Northamptonshire after concerns the latter would not be able to repay the money.

Leicestershire made the unsecured loan to its neighbour last January despite the financial difficulties Northamptonshire County Council was facing.

Last January, the then local government secretary Sajid Javid ordered a best value inspection of Northamptonshire CC amid concerns over its financial management and corporate governance.

The following month, the council imposed what would be the first of two emergency spending bans. The Treasury estimated the council faced a £157m cash shortfall between 2006 and 2020 before damping. 

Leicestershire County Council has recovered the funds with £35,000 in interest.

‘We take very seriously the security of our loans,' said the deputy council leader Byron Rhodes.

‘Our track record is strong and unlike other councils, we did not have any money with Icelandic banks or other high profile bank failures. 

‘Making the most of every pound we spend remains vital and lending money enables us to maximise our income.'

FINANCE

More than a service

By Louise Hayes | 27 June 2025

As Shared Lives week comes to a close, Louise Hayes explains how the scheme is transforming social care in Surrey.

FINANCE

Green Book Review: Evolution not revolution for local investment

By Simon Dancer | 19 June 2025

Treasury's latest review of the Green Book holds the line on orthodoxy but offers cautious encouragement for councils to build stronger, place-based investme...

FINANCE

Lessons for uncertainty

By Ann McGauran | 17 June 2025

When it comes to reorganisation, you need to look at it from every angle. Ann McGauran spoke to experts who have faced the acute challenges of restructuring ...

FINANCE

SEND before spend

By Rob Powell | 17 June 2025

The impact of any failure to fully address SEND deficits will dwarf the benefits of the positive aspects of the Spending Review, and extending the statutory ...

Popular articles by William Eichler