Warrington Council to pay £30m for stake in bank

It has been reported that Warrington Borough Council will spend £30 million on buying a 33 per cent stake in a new bank.

Partnering an unnamed ‘major city financier’, Redwood Bank will target lending to small northern firms when it launches in August. The Labour-led council hopes to take a share of the profits, but opposition parties have raised concerns over the ‘risk’ involved in the move.

The authority hopes to generate income through interest payments, and insists the bank's business plan would be ‘monitored closely’ to protects its investment.

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