Crisis-hit authority will repay £5m loan to county

COMMISSIONERS will take over the key functions of crisis-hit Northamptonshire County Council, Local Government Secretary James Brokenshire has said.

The action comes after an independent inspection report found that the Conservativerun authority had lost control of its budgets and failed in its duty to provide best value for money.

Decisions made by the council could affect Leicestershire taxpayers, as the county council here agreed to loan the struggling authority £5 million in January.

That is due to be repaid with interest in January 2019 but some councillors have said the loan should never have been agreed given the creaking state of Northamptonshire’s finances.

The latest report, which recommended the abolition of

the council, came after Northamptonshire imposed emergency spending controls in February, with its chief financial officer projecting a £21.1 million overspend.

Following the report in March, Mr Brokenshire’s predecessor Sajid Javid said he was “minded” to send in commissioners to oversee the authority.

In a written statement to Parliament, Mr Brokenshire confirmed they were now going in.

Mr Brokenshire said: “Action of this kind is rare and is not taken lightly, but I simply cannot ignore the scale of the problems facing Northamptonshire.

“It is essential residents are able to have faith in their council, particularly in the responsible use of taxpayers’ money.

“That’s why I’m taking swift action by appointing commissioners who carry with them a wealth of experience.

“I am confident they will dedicate themselves to the task at hand.”

Leicestershire County County Council has insisted the £5 million will be repaid and that it is ‘inconceivable’ that Northamptonshire will be allowed to default on the loan.