Thursday, 11 June 2020

Council Agree £21m Loan To Firm Which Lost £6m


Norwich city council has agreed to lend its own housing company up to £21m to prevent the firm’s collapse, after bosses insisted “lessons were learned” from the loss of £6m of taxpayers’ money. The city council set up housing firm Norwich Regeneration Ltd in 2015 to create 1,000 homes at Rayne Park, in Bowthorpe. And the authority loaned the business millions of pounds to fund the project’s completion. But it was revealed the company lost £6m after initial homes were sold for less than they cost to build and the council was overcharged according to a leaked report. Read more on the Eastern Daily Press website.

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