More parliamentary scrutiny over council loans ‘conflicts’

Another parliamentary committee could be set to investigate loans to councils made by the likes of Barclays and Royal Bank of Scotland, which campaigners allege waste millions of pounds and force more cuts to services.

A letter signed by 66 MPs, councillors and academics, including the shadow chancellor John McDonnell, was sent to the chairman of the influential Treasury select committee calling for it to launch an inquiry into the sale of so-called Lobo loans, reports The Independent.

Andrew Tyrie, the Conservative chairman of the committee, said in response that he is concerned and that it is now important to establish whether there is a conflict of interest – and if so, as a consequence, local authorities and therefore council taxpayers have been charged excessively.