Council took out loans to help South Tyneside businesses until Government cash arrived
Town hall chiefs took out loans so they could help out businesses during the coronavirus lockdown.
According to its latest spending update, South Tyneside Council (STC) ‘took out three new short term borrowings’ to fund the COVID grant payments while waiting for the government cash.
But it has now been confirmed ministers have handed over the money promised when they set up the scheme.
The issue was raised at a meeting of the council’s ruling cabinet, which was held by video conference and broadcast via YouTube.
Council leader Iain Malcolm said: “Where we took out short term borrowing to assist with the cash flow because we were giving payments to small businesses, pending getting the cash back from the government.
“Have we had that cash back now?”
Stuart Reid, the council’s corporate director of Business and Resources, confirmed the money had been received.
As of Sunday, June 14, STC had paid out 2,130 grants to businesses, worth a combined total of £24,435,000.