Northampton Town loan: Chief executive leaves council

David Kennedy has resigned as Northampton Borough Council chief executive

One of two senior council officers questioned by police over a £10m loan to a football club has resigned.

David Kennedy will leave his job as chief executive of Northampton Borough Council at the end of July.

It comes as police investigate "alleged financial irregularities" regarding the council's £10m loan to Northampton Town Football Club.

The money, released in 2013 to fund the redevelopment of Sixfields Stadium and nearby land, has yet to be recovered.

Mr Kennedy, who was appointed in 2007, was questioned by police under caution last month along with borough solicitor Francis Fernandes.

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The borough council loaned £10m to the club to redevelop Sixfields Stadium and surrounding land

The BBC understands Mr Kennedy has been off work on sick leave.

In a statement, he said: "I have been proud to serve the public of Northampton for the last decade.

"I have concluded that the time is right for someone else to lead the council's excellent and committed staff.

"I want to thank all those who have worked with me and supported me since 2007 and wish them well in the future."

The statement released by the borough council goes on to clarify that Mr Kennedy's resignation "is not the subject of any termination payment, pension enhancement or settlement agreement".