Northumberland replaces troubled regeneration company
0Northumberland County Council is to replace its standalone development company with a new body after criticism from auditors. In January external auditors EY refused to sign off the council’s accounts because the previous company, Arch, had overvalued Ashington Community Football Club before purchasing it.
Arch paid £1.9m for the club when it was worth just £400,000, the auditors concluded.
Now the county council’s cabinet is set to approve the closure of Arch and the creation of a replacement company.
Nick Oliver, cabinet member for corporate services at the authority, said the new company would retain the best elements of Arch while delivering new governance and performance management arrangements.
“People can also be assured that all regeneration projects will be subject to a robust business case and funding appraisal, and take account of commercial return, regeneration impact and risk. This will not be a company that takes unnecessary risks with taxpayers’ money,” Oliver said.
Unlike Arch, the company will focus all its activities within the county.
Key growth projects will include developing investment zones in the south of the county, including Ashington, Blyth, Cramlington and Morpeth. There will also be a rural growth strategy, the council said.
