At a special meeting of the Executive Cabinet Member portfolio of the Deputy Leader on Monday 15th September, a report was brought requesting approval of a £100,000 investment into Hoot Credit Union. The credit union, like many others, can be an important lifeline for many people who are unable to access traditional financial institutions for support.
However, there are serious questions as to the viability of Hoot even with Bolton Council funding. Cllr Adele Warren, who shadows the Deputy Leader, raised her concerns during the meeting. Specifically, Hoot’s own savings deposits have been decreasing in the last year despite an increase in loans being provided. There is also a £48,000 deficit in the accounts of the credit union.
Additionally, if Bolton Council does make this significant investment, the local authority would have no extra voting rights amongst the six thousand members. This puts taxpayers’ money at significant risk of poor decision making of the board, of which the local authority has no additional voting privileges despite having a seat.
During the meeting and after a forensic analysis by Cllr Warren, council officers confirmed they would need to seek new assurances from Hoot, despite wanting to approve the report without them initially.
The Conservatives have a strong belief in openness and transparency but were shocked that the Liberal Democrat councillor in the meeting, Cllr David Wilkinson, wanted the meeting in private – known as Part B – meaning the public would not be aware of the risk to their taxpayer money.
Cllr Adele Warren called-in the decision for further scrutiny but the Deputy Leader has deferred the decision until further assurances can be taken later. A final decision will be made in due course.
Commenting, Shadow Executive Cabinet Member for the Deputy Leader, Cllr Adele Warren, said:
We’re elected to make sure taxpayer money is spent responsibly and I believe this Labour investment report does not do that. I know credit unions can provide a vital service to residents but that should not be at the expense of taxpayers. That’s why full assurances are needed before a decision can be made.
If the credit union fails, customers are still protected by the Financial Services Compensation Scheme, but we cannot risk £100,000 of taxpayer money when Labour are claiming our council is cash-strapped. And the credit union also covers Bury but Bury Council aren’t being asked to invest, so how is that fair?
