Council rejects attack over loans to other councils
0South Lakeland District Council’s Liberal Democrat council has rejected criticisms by the Conservative Party opposition’s deputy leader over lending to other local authorities.
Tory councillor Tom Harvey slammed the authority after a Freedom of Information request revealed the council has made 10 loans to other councils between 2013 and 2019.
He said: “Residents quite rightly expect money they have paid in council tax to be used for services in South Lakeland, not bailing out other councils in the rest of the UK.
“The council is playing banker instead of starting to fix the problems that residents in South Lakeland are facing.
“Local residents deserve to know precisely how much of their money is being loaned to other councils and where.”
Responding to the criticisms, a council spokesperson said: “In common with most local authorities South Lakeland District Council follows an investment strategy that includes using some of its balances to invest with and lend to organisations considered as ‘low risk’, which includes banks, building societies and other local authorities.
“This has been standard accounting practice for years and all investment is in accordance with the council’s treasury management strategy, which has been approved by the council’s overview and scrutiny committee, cabinet and full council.”
