Councillor confident 'no wrongdoing' in debt crisis

Duncan McGregor told the BBC he was saddened by the situation

The former chairman of a Derbyshire parish council at the centre of an investigation into its debts says he is confident "no wrongdoing will be found".

An external report, published by Elmton with Creswell Parish Council on its website, warns the authority will "most likely" become insolvent and unable to pay staff.

Councillor Duncan McGregor told the BBC he was "very sad" at the situation as the reports findings were discussed at a public meeting on Thursday.

He said: "I don't think they'll find any wrongdoing, personally."

The council took out a £3m loan from the government to build a heritage and leisure centre in Creswell.

The report, compiled by an external consultant brought in to investigate the council's finances, said the "large and systemic failure to follow basic legal obligations" left councillors open to the possibility of being prosecuted.

The National Association of Local Councils will be undertaking an investigation into the authority.

It will look into, among other things, the causes of the financial insolvency and will forensically examine council accounts, as well as assess governing arrangements.

Most irregularities have been found for the current fiscal year.

The meeting heard that any criminal irregularities found will be reported to the police.

McGregor, who was the leader of Elmton with Creswell between 2023 and 2024, but had held the position several times going back decades, said: "I think [others] have allowed a situation to develop... parish councillors take their advice and guidance from people they employ."

Asked if he was confident he personally would not be found of any wrongdoing, he said: "Yes, I certainly am.

"I'm very sad the situation has ended up how it has. It's very sad. What we ought to be doing is looking at how we get out of it."

Members of the public frequently heckled the interim chair, councillor Amanda Davis, as she fielded questions about the upcoming investigation

The interim chair of the council Amanda Davis said: "None of us want this. We are all prepared to work with the investigation... and reflect what we may or may not have done to contribute to it."

The report said that the council, in addition to the government loan, owed more than £230,000 to Bolsover District Council, about half of which was owed immediately as a loan. The rest was made up of previously unpaid bills spanning the past five years.

The meeting heard angry members of the public accuse councillors of strapping local taxpayers with "generations of debt".

'Good progress'

The author of the financial report, Matthew Evans, from the National Association of Local Councils, told the meeting that since its publication in December, a monthly payback plan had been agreed with Bolsover District Council totalling £120,000, to be paid off by the end of the next financial year - with £10,000 a month paid to the authority.

The court summons from the district council for immediate debt recovery has now been stopped because of the agreement.

However, the council still faces the unprecedented "worst case scenario" of defaulting on its debt to the Public Loan Board, a body of the UK government from which the council received the loan for the leisure centre.

"The government could take actions... quite significant and serious action, which would be catastrophic for the council's finances," Mr Evans told the meeting.

He also said he was unsure whether he would meet an upcoming February deadline to present a legally balanced budget but that he was making "good progress".

Christine Hope accused the councillors of "inexcusable" behaviour

Christine Hope, who chairs a local residents' group, told the meeting: "The truth of the council's actions and inactions is what we have sought since our group was formed in 2024.

"The level of incompetence and complete contempt... is quite simply inexcusable.

"Alongside this, the total disregard for repeated requests for information... and refusals to communicate with residents fully... for literally years.

"You've really got nowhere to hide and no excuses."

Mr Evans told the meeting he was "unable to ascertain" how the council decided on a 93% tax precept increase last year.

The investigation will include whether this may have been illegally decided upon, given what later emerged about the state of the finances.

A legally balanced budget is required in order to propose a raise in the precept.

Councillor Rina Gilfillan said: "We put the trust in the financial officers and we were just going with the figures put in front of us."

Asked by the BBC if councillors should apologise, Councillor Paul Colbert said: "Let this investigation run its course... let's stop hanging people before we know the result. Let's get the verdict first."

Another report is expected in the coming weeks with more detail about the council's decision-making on the leisure centre.

A budget setting meeting will take place next month.