Council to investigate its own housing companies

A council is to order an investigation into two of its own housing companies after claims they have racked up debts of £53m.

Wiltshire Council said the independent review would look into housebuilder Stone Circle Development Company and Stone Circle Housing Company, which buys houses from other developers to let to key workers.

Both were established in 2019 by the council's previous Conservative administration but are managed by an independent board.

Liberal Democrat council leader Ian Thorn said taxpayers were "propping up" the debt. Opposition leader, Conservative Richard Clewer, said the companies provide lower cost housing to those in need, helping the council to prevent other costs.

Thorn and Clewer have both previously been directors in the Stone Circle companies.

Thorn said that, as of March 2025, the companies' liabilities stood at £11.33m, while loans and charges owed to the council were at £53.36m.

"The Conservative administration promised that, by 2026, council taxpayers would be seeing a £6m profit supporting essential services and easing council tax bills," said Thorn.

"Instead, the reality is that taxpayers are now propping up Stone Circle's £53m debt that is owed to the council."

Thorn also said he had called for a review in February 2025, but there was no action.

The council has now promised an "independent full and forensic review of the structure and performance" of the companies.

Councillor Gavin Grant, cabinet member for finance, said: "I want to be clear: we are not prejudging what this full review may find.

"But we cannot ignore a pattern where financial difficulties are mounting and have been previously withheld from proper scrutiny, either by our audit and governance committee or by full council."

He also said he hoped to publish the outcome of the review.

Clewer told the Local Democracy Reporting Service (LDRS) he had not seen enough information on the companies to know how accurate the numbers were.

But he said there were "national challenges around the viability of funding of social and affordable rent housing which have intensified in the last 12 months".

And he said building cost inflation had been a problem for all development companies.

"Stone Circle housing also continues to provide lower cost housing for people who are in need which provides additional savings and preventative support to the council," Clewer added.

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