Council knew risk of £6m loan to wholly-owned housebuilder a year before collapse.

The local government’s sole shareholder in Lion Homes voted to liquidate it earlier this summer, wiping out millions of public funds.

According to leaked documents, Norwich City Council knew almost a year ago that its wholly-owned housebuilder would be unable to repay £6 million in public funds.

Housing Today has seen a report by consultancy firm 31 Ten commissioned by Norwich City Council to evaluate if the local authority-owned housebuilder, Lion Homes, was an “effective vehicle to deliver the Council’s objectives” and to assess “the level of financial risk the council is exposed to through Lion Homes”.

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