Eastleigh Borough Council finances inquiry ordered by government

The council's leader Keith House welcomed the investigation

The government has ordered an external review of a council's finances because of possible "excessive risk" from debt.

Eastleigh Borough Council owns properties including The Ageas Bowl, the home of Hampshire Cricket.

The Liberal Democrat-controlled council said its portfolio generated income of about £9m a year.

However local government minister Lee Rowley said the inquiry would determine whether the council should reduce its level of exposure.

'Casino council'

The minister said: "The council remains one of those with [a] larger amount of debt... and a reliance on commercial income."

He said the government wanted to "address instances of excessive risk from borrowing and investment practices by local authorities".

The Conservative MP for Eastleigh, Paul Holmes, who previously called the authority a "casino council" in parliament, welcomed the government investigation.

Eastleigh MP Paul Holmes previously criticised the authority's finances in parliament

He said: "I've spoken numerous times at my worry at Eastleigh's borrowing and debt levels, around £560 million to date, mostly used to buy and build property.

"I think this is a huge risk to services and taxpayers' security. It's not right that with an annual budget of £32 million, Eastleigh can have unsecured debts like this."

The authority said its property portfolio included The Ageas Bowl, a DIY store and a bank.

The council owns properties including The Ageas Bowl, the home of Hampshire Cricket

It said a large part of its investment was the land for the One Horton Heath project, a proposed community of 1,400 homes.

Council leader Keith House said he fully supported the inquiry commissioned from the Chartered Institute of Public Finance and Accountancy.

He said: "Like many councils, Eastleigh has over the last 15 years used borrowing powers to support our commercial activity and generate income.

"This is what has protected Eastleigh residents from the borough council having to make cuts to services all these years."