East Lindsey District Council faces scrutiny over a series of loans totaling £4.4 million made to a company it established to manage local services. Currently, only £521,828 has been repaid, raising concerns about the financial health of Invest East Lindsey, the company in question.
In an internal council report, KPMG, the council’s external auditors, flagged “significant weaknesses” in the company’s management. The company reported a loss of £474,000 for the year ending March 2024.
Council leader Craig Leyland acknowledged that the loans were renegotiated due to factors like interest rate hikes following the Liz Truss government’s budget. He remains confident the loans will be repaid in full with interest.
However, opposition leader Jill Makinson-Sanders criticised the situation, stating that the council had failed to protect taxpayers’ interests adequately. During a recent audit and governance committee meeting, she expressed disappointment at the problem’s handling.
