East Lindsey District Council have formally approved an innovative £5m investment loan which could earn more than £962,000 over five years, in a bid to see a greater return on taxpayers’ money.
The loan was approved at a Full Council meeting on Wednesday evening (May 14). It will be granted over five years to New Linx Housing Trust, rather than traditional investment of the money through high street banks. The housing association will be able to use this money to fund the building of new social housing in East Lindsey.
Portfolio Holder for Finance, Councillor John Upsall, said: “This is another great example where by looking outside the box and thinking differently, we can secure greater benefits for the community both financially and ultimately through the services that we provide, and at the same time allow New Linx Housing to build additional much needed affordable housing within the District.
“We will ensure adequate security measures are in place before any loan is confirmed, but very much hope that we can work with New Linx Housing Trust to make this happen.”
Interest on a £5m secured loan could earn ELDC in the region of £962,500 over a five year period. The money will be used to help support local services provided by the council, and to maintain low council tax.