Funding for Northumberland council’s development company on hold as leader admits ‘the world has changed’

The proposals would have seen £80 million of Advance Northumberland’s debt converted into shares in a debt-equity swap in a bid to reduce hefty interest payments.

Leading Conservative councillors previously insisted this would allow the company to invest in more affordable housing and regeneration projects. However, despite the fact the move was approved in March 2025, the financial reshuffle has yet to take place.

In September, cabinet members agreed to implement the restructure to be implemented in October “or as near thereafter as practical”.

But at Tuesday’s meeting of the council’s audit and standards committee, council leader Glen Sanderson admitted that alternative options were being considered.

He said: “We will have another look at what is the best way forward to meet the wishes we have for Advance and to address the issues around risk. We will have a paper coming to cabinet to ask for specialist advice going forward.

“That is not a waste of money. It is incredibly important to check in this changed world, and the world has changed.

“In the last week, I have met with group leaders and discussed how Advance might progress given the state of the world and trading conditions. Anybody buying or selling a house knows how the war in Iran has affected things.

“All members will have an opportunity in July to have a member’s forum around Advance, no every member of the council can have their say about how they feel Advance may continue to grow as a business.

“We will look at these things together and decide where to go forward.”

Independent councillor Patrick Lambert said he felt there needed to be renewed scrutiny on the decision, which was made prior to all-out local elections last May.

He said: “Thirteen months ago, half of the council changed. These recommendations were made under the previous administration.

“Last year we had the Section 151 officer here at the time who was doing her due diligence on those recommendations and she said she would bring it back in due course. Since then, she has gone – and we haven’t seen a report.

“This to me is the biggest exposure to risk the council has got. It must be number one on the risk register looking at where we are at the minute.

“I just feel, 13 months into the new council, the audit committee is where this should be coming back to. We haven’t had a proper look at this.

“There’s a lot of baggage going back. We can’t do anything about yesterday, but we can do something about tomorrow.”

Cllr Sanderson replied: “There are two ways of looking at Advance. It is a risk, of course it is, but it is also an advantage, and a great potential tool for the council to deliver on its priorities such as affordable housing, sheltered housing, employment land and the regeneration that is going on across the county.

“That is why we took the decision last March. Where we are now is a different position.”