Decision on future of Northumberland council's development company expected in the new year

A major restructure of Advance Northumberland’s debt was put on hold amid concerns over the global financial situation.

The refinancing, which would have converted £80 million of the company’s debt to the council into shares to free up cash, was originally approved in March 2025.

In June, the council confirmed it was bringing in consultants to reassess the original proposals due to geopolitical issues including the war in Iran.

The council’s cabinet agreed to pay £130,000 to fund this work. Leading councillors have insisted that the company remains in a strong financial position regardless of the option chosen.

However, there was concern the debt-equity swap may no longer be the best way forward. At a meeting of the county council, Labour leader Coun Scott Dickinson asked for an update on the situation.

He said: “We have had a leader’s briefing some time ago around Advance’s refinancing. We were given potential dates for when proposals may come forward.

“They have been and gone. I just want to know where we are with that.”

The debt-equity swap would have meant that Advance, which is wholly owned by the council, would be freed from large interest payments that have had a negative impact on the company’s ability to carry out all the regeneration and house-building schemes the council would like it to. The money was lent under previous administrations on an interest-only basis, meaning the original amount would never be paid back.

Responding, cabinet member for finance Cllr Nick Oliver said: “The work is still being carried out. We’re waiting to see a first draft of recommendations.

“We’re still on track and we’re heading for March. My view is it should then come to council and we should have a full debate on it.”