Andy Carter slams Warrington Council for £145million loan

Mr Carter, who is the Conservative MP for the south of the town, has claimed that there has been a lack of scrutiny around the loan.

Even more serious are Mr Carter's concerns when considering that Warrington Borough Council is in debt - to the tune of £1.8billion.

The town's Conservative MP has taken aim at the council for an alleged lack of scrutiny over a multimillion-pound loan (Image: Parliament UK)

A statement released by the MP's office explains that the MP is worried about the decision of Labour councillors to give a commercial loan to a business in Manchester 'without asking a single question.'

Mr Carter's office said: "Labour cabinet members were last week asked to approve two new loan agreements which the council argues are transfers to a new party. 

"Despite the complicated arrangements and strict protocols which councils have to operate under, not one cabinet member had any questions to make sure the deal was within the rules and benefiting their town in terms of regeneration."

The Tory MP said that in May, Labour councillors forced through a reduction to the number of councillors from other parties who attend the Audit and Corporate Governance Committee, which is responsible for checking the processes of the council.

At the meeting, the council promised to replace them with ‘independent experts’ - Mr Carter says that to date, no new ‘independent experts’ have been appointed, despite elected councillors being removed from the committee.

Mr Carter said: "I am genuinely concerned that these councillors do not fully appreciate the level of risk the council is exposed to and they’re simply not taking adequate measures to ensure residents are protected.

“Warrington Labour has borrowed £1.8bn, meaning our council is a significant outlier.

"The council’s debt is £1.801m, which is 9.9 times the council’s core spending power.

"As a comparison, the average debt-to-spending power ratio is about 1.4 for unitary councils. We, because it’s our money after all, are in way over our heads.   

"It is the second highest level of debt for any unitary authority after Thurrock, who lost control of their finances and more than double that of Slough. Commissioners had to take over the running of Slough after the council effectively went bust."

Mr Carter says that the council's spending means 'we are in way over our heads' (Image: Newsquest)

Mr Carter added: “Last week, Labour councillors at the cabinet meeting literally nodded through a loan to a commercial business for more than £145million without challenge, I’m sure they will have looked at the papers but I cannot imagine this type of approval being granted anywhere in business without some discussion or challenge, they either don’t understand or they’re simply not taking it seriously. 

"There is zero scrutiny of what’s happening to taxpayers' money and opposition councillors are being excluded. 

“I want to be assured that councillors understand the proposals, I want to see [what] the regeneration benefit for my constituency and this town is. 

"Every bit of evidence suggests there’s no benefit because the funds are going to a business to operate hotels and a business park in Manchester, not Warrington. 

"I think this new agreement fails to meet the requirements of the Prudential Code and I’ve written to the leader to ask for an explanation of how this meets the rules for regeneration.”  

The deputy leader of the council, Cllr Cathy Mitchell, responded to Mr Carter on social media (Image: Warrington Borough Council)

On social media, the deputy leader of Warrington Borough Council, Cllr Cathy Mitchell, responded to Mr Carter's comments, saying: "Which services would you cut, Andy?

"I'm deeply concerned about government support for Warrington Council going from £70million per year in 2010 to just over £1million per year now.

"Investments provide net income over £20m which helps to keep services going. 70 per cent of budget for children and ASC.

"What do you think are the risks of passing on Tory cuts to children's services or adult social care?

"Reducing the number of social workers?

"Warrington is the sixth lowest funded council in the country.

"As a Warrington MP what have you done about that? Warrington deserves more."

Warrington's Labour group, and the north west Labour Party, were both contacted by the Warrington Guardian with a deadline to respond by - no such undertaking has been received.