Northants repays loan to Leicestershire

4 Jan 19

Northamptonshire County Council has repaid a loan taken out with a neighbouring county.  

Leicestershire County Council said it had recouped a £5m loan plus interest from the cash-strapped council.

The loan was made in January 2018, around the same time that former communities secretary Sajid Javid sent an inspector into the council following allegations of financial management failures.

Leicestershire announced that the full £5m has been recovered as well as £35,000 in interest payments, which it says it will put back into services.

Opposition councillors had previously expressed concern that the loan may not be repaid, given Northamptonshire’s financial vulnerability.

Leicestershire’s deputy leader Byron Rhodes, said: “We take very seriously the security of our loans. 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.”

Since the loan was agreed, Northamptonshire has taken the unprecedented step of issuing two Section 114 notices, one in February and one in July.

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