Call for council to pull out of loss-making bank

By Martin Ford | 11 October 2021

A bank part-owned by Warrington Council has made a loss, according to its latest accounts.

Accounts published last week revealed Redwood Bank made a loss of £1.7m during 2020, an increase on losses of £1.2m recorded the previous year.

Warrington has a 33% stake in Redwood, having paid out £30m since 2017.

It invested a further £2m this year in line with Redwood directors’ expectation in the 2020 accounts that funding from investors would be required to ‘fulfil its full potential’.

Following an objection from a member of the public regarding Warrington’s initial investment in Redwood, external auditors found ‘no clear evidence’ that it was unlawful.

However, opposition councillors have called for the authority to end its involvement.

Conservative councillor Ken Critchley said: ‘Further losses at Redwood Bank only reinforce the need for the council to exit this poorly performing investment.’

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