Council's £12.5m loan to university questioned

Councillors have raised concerns about a council decision to loan £12.5m to a university.

On 30 September Cumberland Council agreed to loan the University of Cumbria the money as part of its plans to build a new campus in Carlisle.

However, a group of councillors has formally questioned the move in light of the authority's "fragile financial situation".

The concerns are due to be discussed at a council meeting on 20 October. The council said it would not be appropriate to comment before this meeting.

Last month, as part of the new campus scheme, the Labour-led council agreed to loan the university £12.5m as well as give away its land on English Street.

But Liberal Democrat councillor Chris Wills said opposition councillors had not been given an opportunity to scrutinise this decision, according to the Local Democracy Reporting Service.

He said the Liberal Democrats, alongside independent councillor Robert Betton, had initiated a call-in to gain some transparency over the move.

A call-in allows councillors to intervene when they feel a council decision needs to be revisited or possibly changed.

Betton said the university had been a positive for Carlisle but that more information was required about the council's deal with the institution.

"I hope it [the university] delivers tourism, local construction and teaching jobs, but the present Labour administration is not listening," he said.

The call-in will be discussed at a meeting on 20 October.

Wills said: "Considering the fragile financial situation of Cumberland Council… [we] believe that the granting of a favourable conditions loan of £12m to the University of Cumbria requires close scrutiny."

The university scheme is part of the wider Borderlands Growth Deal.

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