Northampton Town Football Club

Lord Flight Excerpts

Wednesday 3rd March 2021 Lords Chamber

[Lord Greenhalgh (Con)]

My Lords, I join the noble Lord in condemning any situation where money is lent in a way that does not secure the amount that has been lent, resulting in taxpayers being out of pocket. We recognise the importance of carrying out the recommendations that were outlined in the public interest report and will monitor the situation and see how things progress.

[Lord Flight (Con) [V]]

What lessons can be learned from the Northampton Town Football Club case and what steps, if any, should the Government take to ensure that all councils have rigorous procedures for protecting and safeguarding public funds?

[Lord Greenhalgh (Con)]

My Lords, there is a trend towards an increasing reliance on commercial income as a way of balancing the books. Therefore, the Government are doing two things. We are undertaking a complete review of the prudential framework that governs loans of this nature, and the Public Works Loans Board has changed the lending conditions to ensure that local authorities cannot take on debt as a way of pursuing commercial income.