A cash-strapped council is paying more than £110,000 a year in interest on a £1M loan it took out, but can't remember why. Boston BC took out the loan in 1991 at a fixed rate of 11.25% over 50 years. But the Lincolnshire authority has admitted it has no idea what the cash was for, and has launched investigations to find out. A council spokeswoman said: ‘There are investigations under way by the finance department but currently, the paper trail to find out what it was for leads nowhere.' Evidence of the loan came to light at last month's council budget meeting. And the council has been told it would cost £4m to pay the loan off early, so it will continue with the current repayments.
