A council is not a bank

Iou First there was the shock of learning that local councils had placed – and then lost – millions of pounds of taxpayers’ money in Icelandic banks.  Now we learn that Lancashire County Council, believe it or not, has been lending money to other councils.  To be precise they lent Birmingham City Council almost £8 million this year.  Contrast this with the saving Lancashire County Council could have made if they had taken up our 10 per cent challenge.  Yes, by cutting 10 per cent from three areas of non-essential spending, they could have saved £8 million to return to the taxpayer in lower council tax.  Instead they increased council tax and decided to play around with £8 million that was eventually loaned to another council.


Talk about priorities!  This council made a choice to lend to another council rather than give Lancashire taxpayers their money back and they should be held to account on that.  But having lost £10 million in Iceland and now doling out money like some back street loan shark, Lancashire County Council clearly isn’t putting local taxpayers first in this economic crisis. 


If you live in Lancashire you can email the leader of Lancashire County Council, Cllr. Hazel Harding, to ask why Lancashire County Council would rather lend your money out to other councils than give it back to you in lower council tax. 

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