The Government has commissioned a review of Eastleigh BC’s finances to start this week after concerns over its debt levels.
In a letter to the borough’s MP Paul Holmes, local government minister Lee Rowley said the review followed work over the past year between the Department for Levelling Up, Housing and Communities (DLUHC) and the council to examine the authority’s financial health.
The minister said: ‘Given that the council remains one of those with larger amount of debt within local government and a reliance upon commercial income, we are requesting that an external financial review is undertaken of the council’s position and whether there are actions that are appropriate for the council to take to reduce its level of risk over the coming years.’
Mr Holmes said: ‘I’ve spoken numerous times at my worry at Eastleigh’s borrowing and debt levels - around £560m to date - mostly used to buy and build property.
'I think this is a huge risk to services and taxpayers’ security.’
Eastleigh confirmed it had been working with DLUHC to 'help them to better understand the financial position of the council’.
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