Solving dispute over £40m council debt 'too slow'

West Northamptonshire Council, based at Angel Square in Northampton, was told it needed to settle the dispute

A dispute about £40m of debt between two councils has been going "too slowly", according to the auditor looking at their finances.

The disagreement follows the splitting of the former Northamptonshire County Council into two unitary authorities.

Unless it is settled, there will be financial uncertainty at West Northamptonshire Council and North Northamptonshire Council.

Mark Stocks, from auditor Grant Thornton, said: "I can't sign the accounts until that disaggregation is resolved and it brings risk upon you."

According to the Local Democracy Reporting Service, the external auditor told West Northamptonshire Council: "To be candid, I just think you're being too slow on disaggregation.

"We're into year four now of the organisation's life and we've not agreed a position.

"It's quite a sizable chunk of cash, around £40m, that you haven't yet agreed with the North."

He said that if a solution could not be reached, the auditors would have to step in with "statutory powers" to find a resolution.

North Northamptonshire Council said in November it would be pursuing arbitration, meaning an independent third party would settle the matter.

But both authorities have since agreed that solving the dispute between themselves and not entering a legal battle would be the best outcome. However, they are still at a stalemate on where the final responsibility lies for the costs.

Mr Stocks added the disagreement "makes it difficult for both myself and officers to give you a true view on what your financial position is".