Aug 15 2013 by Rebecca Koncienzcy, Ormskirk Advertiser
THE county council has borrowed millions from Wirral Council.
Lancashire County Council has borrowed £5m from the Merseyside council in what the council say is nothing new.
Gill Kilpatrick, county treasurer for Lancashire County Council, said: “This is a very routine financial arrangement, which benefits the county council through secure borrowing and lending between public organisations. This is not a new idea and is carried out by most councils.”
Interest rates are an average of 2.45% depending on the duration of the loan and credit rating. Loans are usually to pay for major maintenance work.
Ms Kilpatrick added: “At the end of the last financial year, we had no loans outstanding to other local authorities. We occasionally make this type of loan, such as when we have funding set aside for a project that isn't needed immediately, but can be loaned to another organisation.”