Council's £12.5m university loan faces scrutiny call-in

Summarised from 3 outlets · Updated 13 Oct, 06:00 · Archive

Cumberland Council's £12.5m loan to the University of Cumbria for a new Carlisle campus has been called in for scrutiny by opposition councillors citing the council's fragile finances.

Cumberland Council agreed on 30 September to loan the University of Cumbria £12.5m and provide land on English Street for building a new campus in Carlisle. The council also gave the land at nil consideration, as part of the institution's wider plans.

The funding package for the campus project totals £58million from the Borderlands Inclusive Growth Deal, £5.215million from the Carlisle Town Fund, £3.5million from the university's own capital, the council's land contribution, and the proposed council loan.

A group of Liberal Democrat councillors and one independent member have formally called in the decision, seeking to revisit or potentially change it. They cite the council's 'fragile financial situation' as their concern. Councillor Chris Wills said the loan 'requires close scrutiny', particularly in light of recent reports on the council's finances.

Independent councillor Robert Betton said the university had been positive for Carlisle but that more information was needed about the council's deal with the institution. He expressed hope that the scheme would deliver tourism, local construction and teaching jobs.

The call-in allows councillors to intervene when they believe a decision needs revisiting. It will be discussed at a special meeting of the business and resources overview and scrutiny committee on 20 October. The university campus scheme forms part of the wider Borderlands Growth Deal.

How it is being reported

• Cumberland Council's £12m university loan called in for scrutinyA number of councillors have raised concerns over a recent decision by Cumberland Council to lend £12million to the University of Cumbria in what was described as a 'favourable conditions loan'.Cumberland News · 13 Oct, 05:00
• Cumberland Council's £12m university loan called in for scrutinyA number of councillors have raised concerns over a recent decision by Cumberland Council to lend £12million to the University of Cumbria in what was described as a 'favourable conditions loan'.Whitehaven News · 13 Oct, 05:00
• Council's £12.5m loan to university questionedThe University of Cumbria is seeking to build a new campus in Carlisle.BBC Cumbria · 12 Oct, 21:32

In this story: University of Cumbria · Cumberland Council · Carlisle · Chris Wills · Robert Betton

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