How Councils Blow Your Millions: Documentary ready to lift the lid on where public money goes

A Channel 4 documentary How Councils Blow Your Millions, are claiming to have uncovered unknown deals between councils and banks that cost taxpayers millions.

Following parliamentary committee chairman Clive Betts calling for an inquiry into £15bn of risky bank loans taken out by councils across the country, Dispatches are estimating that banks made more than £1bn in upfront profits on local authority loans.

For the past three months, Channel 4 Dispatches has been investigating the books of town halls across the country.

Betts has also called for the Financial Conduct Authority to investigate the City firms that give specialist financial advice to town halls on their borrowing.

FCA? Well their predecessor – the FSA – got caught out with Icelandic Banks…….

The Financial Services Authority (FSA) should take a more active role in the regulation of treasury management advisers. The evidence which we have examined has raised concerns about potential conflicts of interest and questions as to whether there are any financial transactions between treasury management advisers and brokers that might compromise the independence of advice being given to
local authorities. There is a strong case for a full investigation by the FSA of the services provided by local authority treasury management advisers. We recommend that such an investigation be carried out as soon as possible.