Council criticised over loss in "fire sale" of Redwood Bank

WARRINGTON Borough Council has been criticised over a decision to sell its £30m stake in Redwood Bank at a loss by the opposition Liberal Democrat Group, highlighting longstanding concerns about risky investments made with public funds.

While full details of the loss are yet to be confirmed, the Council has confirmed it is selling its shareholding in Redwood Bank for less than the original investment, raising serious questions about financial decision-making and oversight. The loss is likely to be in the millions.
Cllr Ian Marks, Liberal Democrat Finance Spokesperson, said, “We opposed the investment at the time it was made and have consistently argued against it since then. It fell outside the core role and expertise of a local authority, and we warned from the outset that investing in a bank was not an appropriate use of taxpayers’ money. Local authorities should focus on delivering vital services, not speculating in complex financial markets. “The loss underlines the risks that we highlighted at the time. This investment is also the main reason that we still have not had our accounts audited for many years, which has reflected badly on the Council.
“The Government-appointed Envoys have made great play that there would be no ’fire sale’ of assets. We believe this is effectively a fire sale because the Bank is being sold, in our opinion, at a lower price than is necessary, because there has been so much publicity about the Council’s desperate need to reduce its debt.
“We have also pointed out repeatedly similar concerns over the Council’s investment in energy ventures such as Together Energy. This carried comparable levels of financial and operational risk because it was outside our sphere of knowledge and competence.”
Cllr Mark Browne, Leader of the Liberal Democrat Group, added, “This situation demonstrates a pattern of poor judgment when it comes to large-scale investments. Residents will rightly be asking why their money was put at risk in areas far removed from the Council’s core responsibilities. As we have said many times, we need greater transparency, stronger scrutiny, and a renewed focus on protecting public finances. We welcome the full review of the Council’s investment strategy to ensure that future decisions prioritise security, accountability, and value for money for Warrington residents.”

So how much could the loss be?

• Warrington Borough Council invested about £30–£30.4 million in Redwood Bank.
• By 2023, that stake was revalued at around £4.3 million.
• This led to an impairment (loss in value) of roughly £26.1 million.
• a possible sale value around £15 million being discussed internally (not confirmed as agreed)
• Shares not yet sold (as of latest available info, Feb–Apr 2026)
• Sale process underway, but outcome, buyer, and final price remain undisclosed

It’s understood the council will be making a statement on the Redwood Bank sale in the near future.
One of the reasons the council’s accounts couldn’t be signed off was the challenge over the investment in Redwood Bank by the late Richard Buttrey, a retired accountant and part of the Stop the Council Debt group, who is now sadly deceased, along with his fellow campaigner Bill Roberts.
Both flagged their concerns via Warrington Worldwide and were regularly rebuffed by the council.