Isles of Scilly Council to borrow £3.5m

The Isles of Scilly Council is set to borrow £3.5 million in order to cover costs for the day-to-day running of the community.

The authority currently governs around 2,200 inhabitants.

According to the council, its debts have been accumulating for several years, and it only has around £500,000 available funds.

External auditors Grant Thornton has issued the council with a Section 24 notice under the Local Audit and Accountability Act 2014, which advised the authority has ‘inadequate financial control’.

Steve Sims, the council's vice chairman and chair of the finance, audit and scrutiny committee, claimed the debts had resulted partly because the council ‘has to be compliant with environmental laws which we've ignored before,’ and also blamed a ‘pretty creaking software system of finance’.

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