Cash-strapped County Council enters the dodgy loans business

When Sandra told us last night that she'd heard Leicestershire County Council were loaning Northamptonshire £5 million at nominal interest, I couldn't believe it. But here's the proof - and it's even worse than it sounded.

They're closing children centres and abandoning libraries. They've long since been stripped of schools and flogged off care homes. But obviously they can still 'loan' £5 million to their Tory mates on a neighbouring County Council that is to all intents and purposes bankrupt as well as pointless.


The reason? If Northants actually went bankrupt the government would be the biggest loser. Sorry, that sounds like a win-win to me. It's not as if the people of Northamptonshire would lose out because they already pay through the nose for nothing.


The best bit? The money isn't coming from reserves, money that's sitting in the account doing nothing. It's coming from the revenue account - day to day income and expenditure. It's another £5 million in cuts with the vague possibility of repayment some day. Far better to have an each-way punt on the Grand National.


The best deal for everyone in the shires would be for county councils to be abolished forthwith and their powers given to larger, probably combined, unitary districts. That was our Labour policy at the County elections last year, but somehow Leicestershire still elected these people.