The future of Northumberland County Council's development company Advance will not be decided until at least the spring, according to the local authority's finance chief. The council is currently considering options after plans to restructure the company's debt were put on hold.
Despite the fact the £80 million move was agreed by full council in March 2025, the council is yet to proceed due to geopolitical impacts on the world's financial systems. Instead, the county council has brought in consultants to see if the planned debt-equity swap is still the right way forward.
Audit committee update
Speaking at Wednesday's meeting of Northumberland County Council's audit committee, Coun Anne Dale asked finance director Jon Ritchie for an update on the situation. Speaking after an annual report on Advance's position, she said: "I want to make sure we have assurances around the financial and strategic position going forward. Could we say what progress is being made and can we have assurances?"
It had been hoped that, by freeing up Advance from the historic debt, it would be more able to carry out regeneration and house building across the county. However, a decision on that restructure remains some way off.
External review in second phase
Mr Ritchie replied: "Cabinet agreed to commission external review. Phase one was to consider a wide range of options and then phase two was to narrow it down to the ones that would get a more detailed review. We're in that second phase now. We always said we couldn't confirm when and where these recommendations go to. We expect the work to come in during the Spring next year."
"If it is a decision around refinancing it, it will come to full council - but a separate recommendation could be taken forward. The work is progressing, it's very detailed and very technical - this is why we have got external and legal partners. Advance have contributed a lot of information but haven't been involved in the decision-making. The ultimate decision will be a cabinet or a council decision - it's a big decision that needs to be taken at a strategic level for the council and for Advance."
Improved transparency
Advance and its predecessor Arch have had a controversial history at the council, with the company often the source of rows between the administration and opposition councillors. However, the leader of the Reform UK opposition group, Coun Rick Baker, said he felt things had improved.
Coun Baker said: "The level of transparency is much better. We are in a much better place than we were. We need to look at the entity they are, rather than the reputation they had. They're moving in the right direction and working in our best interests."
