COUNCIL chiefs have 'reluctantly' approved a £58.7 million investment into two solar farms – and dismissed Theresa May's claim that austerity is over.

The executive board backed the business case for the purchase of solar farms in Hull and York during Monday's meeting at the Town Hall.

It will cost in the region of £21.2m to buy the Hull site and £37.5m for the York site.

They will supply the authority with all of its electricity needs and are planned to save the council £1 million a year on its electricity bill.

It will result in the authority, which will be able to control its own energy price increases, becoming the first council to be fully 'green powered'.

The schemes will be funded by prudential borrowing.

Deputy council leader Cllr Russ Bowden said: "I am very proud of the work the council has done around solar investment.

"I think it is a real credit to the council in terms of the green energy agenda and around the work of driving income for the council.

"This will generate significant income for the council, over and above the cost of borrowing for those investments."

The executive board also approved the installation of a solar photovoltaic array at Hermes' Parcelnet Ltd distribution centre in Rugby.

It will be similar to the imminent installation scheme at the firm's Omega facility.

Cllr Bowden (LAB – Birchwood), who is executive board member for corporate finance, stated the income over 20 years will offset the authority's revenue pressures.

He said it is planned to generate around £850,000 over the project lifetime.

Members also backed a £42.5 million loan arrangement with a housing provider, which is planned to bring in a 'significant stream' of income, partly through interest payments.

The executive board approved the authority entering into a seven-year 'secured development' loan facility with Nuvu Living (Liverpool Waters) LLP, owned by Your Housing Group (YHG).

Members also extended YHG's previous £10 million loan facility with the authority.

But members were keen to highlight the reasons for making the investment decisions – and slammed Prime Minister Mrs May's claim that austerity is over.

Cllr Hitesh Patel, executive board member for personnel and communications, said: "The common theme here is about trying to generate income to plug a gap in our budget from funding that we would traditionally get from central Government.

"Theresa May announced austerity is ending and here we are making decisions about investing.

"The fact is that it is not ending and local authorities are still having to deal with massive budget cuts and trying to square this circle of trying to provide crucial statutory services, with ever-decreasing funding from central Government that we traditionally enjoyed.

"So, reluctantly, we need to take these type of investment decisions to generate income.

"I do not believe the Government has any real desire to end austerity, at least not for the north west."

Shortly after, Cllr Bowden declared 'austerity is not over'.

He added: "Should councils be doing this kind of thing?

“The answer is no, this is not a core business for local authorities.

"What we have obviously taken a decision to do as an administration is to do our utmost to protect jobs in this council and to protect services that those people deliver for the benefit of residents, particularly the most vulnerable here in Warrington.

"I don’t have any misgivings about what we have done, I know it is absolutely is the right thing to do."

Furthermore, Cllr Hans Mundry, executive board member for highways, transportation and public realm, highlighted the 'countless' number of jobs that have been saved.

He said: "How many frontline jobs have we saved by doing these schemes?

"How many frontline services are we still delivering because we are finding money from other avenues?

"We are forced into doing these sorts of things."