Luton councillors in disagreement on whether £500m loans to Luton…
Disagreement between opposing political parties has resumed over whether loans by Luton Borough Council to its airport company, Lution Rising, are secured or unsecured. The latest exchange came during debate on the local authority’s treasury management annual report at a full council meeting on 15th November. The opposition group leader said: “… there’s more than £500m of unsecured loans, which have been given to the airport company. I know I’m about to be told those loans are in fact secured on the assets of the company. But that’s nonsense. You can’t take as security for a loan like this assets which the council already owns. They’re effectively unsecured.” It is unclear whether the loans are secured, as they are to a separate entity, London Luton Airport Limited, trading as Luton Rising, and the council may legally be separate from that. Councillors approved the annual report on treasury management and prudential indicators for the year ending March 31st 2022. .Tweet Luton councillors in disagreement over £500m loans to airport company Councillors agree to disagree over whether huge loans are secured or unsecured By Euan Duncan, Local Democracy Reporter (Luton Today) 18th Nov 2022, 1:54pm A war of words between councillors from opposing political parties has resumed over whether loans by Luton Borough Council to its airport company are secured or unsecured. The latest exchange came during debate on the local authority’s treasury management annual report at a full council meeting. Finance portfolio holder and Labour Limbury councillor Rob Roche warned: “I don’t want people to think we’re going to do something stupid as an unsecured loan against an asset.” Liberal Democrat Barnfield councillor David Franks disagreed, describing the report as “a reminder how much more difficult dealing with the council’s cash flow is because of the level of debt the council is carrying”. The opposition group leader said: “And, in particular, there’s more than £500m of unsecured loans, which have been given to the airport company. “I know I’m about to be told those loans are in fact secured on the assets of the company. But that’s nonsense. “You can’t take as security for a loan like this assets which the council already owns. They’re effectively unsecured.” Councillor Roche explained: “We’ve a separate entity as a company, London Luton Airport Limited, trading as Luton Rising. The council is separate from that. “The asset is secured by debenture in Companies House and we’ve first charge on that asset. So it’s secured against the asset. I don’t want people to
