Laura Sharman 21 February 2022

London borough settles LOBO loan dispute

Newham Council has reached a multimillion pound deal with Barclays Bank to settle its long-running Lender Option Borrower Option (LOBO) loan dispute.

The council took out ten LOBO loans with the bank between 2007 and 2008 to the value of £238m. It first took legal action against the bank in 2018 alleging fraudulent misrepresentation in relation to the loans.

The new deal will allow the council to reduce its interest payments and avoid continued lengthy legal proceedings.

The mayor of Newham, Rokhsana Fiaz, said: 'We will always stand up and get the best deal for our residents. This is why the council filed a High Court claim against Barclays Bank in 2018 and was prepared to pursue that case all the way if necessary.

'The deal is a successful resolution of the litigation for the council and means that we can spend and invest very significant sums in services for Newham residents now and in the future.'

The council struck a deal with NatWest bank in 2019, saving £143m by terminating six LOBO loans.

#Legal #Loans #Finance

Analysis

10 ways councils are making budgets go further

Discover 10 ways councils are stretching budgets further, from digital transformation and energy efficiency to community partnerships and data-driven decision-making.

Opinion

Autumn Budget Insights: The local government balancing act

Jonathan Werran, chief executive of Localis, explores how the Chancellor’s fiscal choices could shape local growth and investment for years to come.

Most Popular News

‘Suck it up’: Leaked video leads to Reform UK suspensions

Labour MPs urge Chancellor to scrap ‘outdated’ council tax system

New unitaries in the south to cost over £12m

Approval of largest solar farm scheme branded ‘appalling’

Councils in top 10 for password leaks

New Products

Vent-Axia Delivers Social Housing a Smart Ventilation Solution Ahead of Awaab’s Law

New remotely lockable cabinet will help manage medication for people with mental health issues

UK-first tool developed by Bluesky scores areas green credentials to aid urban planners

New partnership drives improved air quality and healthier homes in social housing

ShuttleID launches 90-day free trial for local authorities

New steps to keep tenants safe

Invision360 secures Innovate UK smart grant for VITA EHCP generator

Case Studies

Acrospire Delivers Retrofit Lighting for Newbridge’s Joe Calzaghe Footbridge

Acrospire Delivers PIR-Controlled Lighting at Ruislip Lido Car Park

Spennymoor Market Place and Consett Middle Street revitalised using Thorn Lighting’s Thor Lanterns and Customisable Gobo Projectors

Acrospire Partners with Bath & North East Somerset Council to Illuminate Historic Film Location with LED Upgrade

Believ to install 22 charge points across Redcar and Cleveland

Acrospire Enhances Harlington Underpass with Energy-Saving Vandal-Resistant Lighting

Croydon Council selects integrated corporate GIS to improve efficiencies

Company Anouncements

Lucy Zodion recognised as sustainability leader with Build Back Better GREEN Award for HAWK3

CU Phosco Becomes Sustaining Member of DarkSky UK to Champion Better Night-Time Lighting

Yorkshire schools SuDS partnership boosts flood resilience

Airtech Helps Landlords Comply with Awaab’s Law

Cloudhouse offers housing associations risk-free route to IT modernisation

Adaptations teams’ opportunity to optimise value

Vent-Axia Welcomes Awaab’s Law Draft Guidance

Paralegal Officer Legal and Democratic Services

£25,989 - £27,254 per annum pro rata

An exciting opportunity has arisen for a Paralegal Officer to join our Legal and Democratic Services team Northallerton, North Yorkshire

Recuriter: North Yorkshire Council

Head Chef

£34,434 - £38,220

If you're passionate about crafting memorable food experiences and managing a high-performing kitchen team, we want to hear from you. Harrogate, North Yorkshire

Recuriter: North Yorkshire Council