CONCERNS are again being raised over Warrington Borough Council’s accounts and £1.6b worth of borrowing, with still no date for the last three years’ accounts being signed off by the Auditor, Grant Thornton.
Opposition councillors were hoping to hear a date at the Audit Committee last week but nothing was forthcoming, apart from a statement that the Council and Grant Thornton were getting closer to an agreement.
Liberal Democrat Spokesperson for Finance, Cllr Ian Marks says, “I have lost count of how many dates have been promised to us. It was significant that this time the Auditor would not commit himself to a date, which suggests there is still some way to go. There are three sets of accounts outstanding – 2017/18, 2018/19 and 2019/20. The on-going delay can only be doing harm to the Labour Council’s reputation and is costing a fortune in fees.
“We were told about the action list the Council has agreed following a financial review by the Local Government Association and a governance review by a leading firm of accountants, PWC.
“The two investments that have generated the most criticism and controversy are Redwood Bank and Together Energy. I am pleased to see there are proposals to consider appointing external advisors to monitor the Council’s investment in the Bank and to review Board appointments on both bodies.
“Due to changes in national regulations, councils can no longer make investments just to generate revenue to support essential services, even though no alternative source of funding has been proposed by central government.
“We have criticised the Council for this in the past, where we felt that investments were too risky, so welcome the statement at the Audit Committee of a policy change.
“Liberal Democrats agree the need to find creative ways of generating income to safeguard basic services in the face of stringent cuts by government. However we believe Labour has made some wrong decisions and exposed current and future council taxpayers to excessive risk by building up huge debts.”
Wendy Maisey OBE, Chairman of Warrington Conservatives added her voice to the concerns saying “There’s a need for Warrington Borough Council to come clean, does, “technical issues” mean the independent auditors don’t agree with the Local Authority over the outcome of the Audit?
It’s vital they are transparent in terms of their borrowing and ability to service the debt and this statement is worrying.
“To hear that Warrington Labour has borrowed £1.6bn to buy supermarkets in Salford, office blocks in Manchester and an energy supply firm but they can’t tell us when any of them will start to pay their way should be a massive concern to every taxpayer in the Borough.”
Just before Christmas Warrington South MP Andy Carter said the council’s £1.6b “risky” investments in capital projects should come under review by the Government describing it as “excessive council borrowing.”
Council leader Cllr Russ Bowden and Finance spokesperson Clrl Cathy Mitchell were given an opportunity to respond.
Previously they have said they remained “pleased with the council’s “long term investments” which they say have been necessary to maintain front line services due to Government cuts on Local Authority funding.
MP calls for urgent inquiry into excessive council borrowing
