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County council debates deal to loan University of Northampton £14 million for new campus

Nick Petford.

Nick Petford.

A deal to lend the University of Northampton £14 million for its new Waterside campus will be debated by Northamptonshire county councillors next week.

The funding proposal breaks the £10 million value of loans allowed by the council which means it has to be approved by cabinet.

The funding will take the form of a third party loan in which the county council will receive the cash and pass it to the university.

In November, the Government confirmed an application for funding by Northamptonshire Enterprise Partnership (NEP) for the new campus had been approved by the Public Works Loan Board (PWLB).

Councillor Bill Parker, cabinet member for finance, said: “The university’s plans to create a waterside campus will be a massive boost to the local economy. The plans were nominated by NEP for a new concessionary lending rate for infrastructure projects.

“It’s clearly a hugely significant element in the regeneration of the Northampton which includes projects like the £3m makeover of our main shopping centre in Northampton, a £20 million redevelopment of our train station and a £7million project to bring a new bus interchange to the town.

“The council is effectively acting as a conduit for the loan, so there will be no financial strain for the council. Repayment of the principal amount and interest will be met by cash flows from the university.”

The cabinet meeting takes place at 2pm on Tuesday, February 11 in the Blue Room at County Hall in Northampton. The council’s full report is available on its website.

 

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