WARRINGTON Borough Council's executive board has deferred its decision on whether or not to grant Warrington Collegiate a 10-year loan until September.

The board met at the Town Hall tonight, Thursday, to discuss the loan, which the Warrington Guardian believes to be around £11 million.

Cllr Colin Froggatt (LAB – Poulton South) asked for the decision to be 'called in' and it was on the agenda at last Monday's scrutiny committee meeting.

But following debate for more than one hour, councillors deferred the 'call in' on the grounds of exceptional circumstances after Cllr Chris Vobe (LAB – Culcheth, Glazebury and Croft) put forward a motion.

Cllr Froggatt believes the decision should not have been taken in private and argues not enough thought has been given as to the financial cost involved but was unable to attend the special meeting.

The council's solicitor Tim Date confirmed the matter needed 'to be resolved' by this Saturday and that the executive board was 'entitled to proceed' with a decision tonight.

Scrutiny committee chairman Cllr Laurence Murphy (LAB – Stockton Heath) reported back to the executive board and said the claim regarding the 'urgency' of the matter was found to be 'unconvincing'.

Cllr Russ Bowden, who is in charge of the council's budget, has stated if a decision was not made this week the collegiate would be in a 'small amount of difficulty' but insisted it would not 'impact' the council.

But at tonight's meeting he invited fellow executive board members to 'hold off' from making a choice until another scrutiny committee meeting takes place.

He said: "A decision was made under full compliance with council regulations.

"I was there on Monday and presented a defence, if you like, on the points raised.

"I am happy with the robustness of the scrutiny process – I don't have anything to hide from the scrutiny committee.

"I propose to go ahead with a rearranged scrutiny committee meeting in early September and to then conclude it at the executive board meeting on September 14.

"Each loan is considered on its own merits and we have been through the proper process."

Cllr Bowden also hailed the council's work in continuing to deliver crucial services in difficult financial times.

"We have exceeded the targets – without which, we would be challenging services at this council," he added.

Speaking after the meeting, Cllr Murphy welcomed the decision made.

"I am very pleased that the executive board has decided to allow the scrutiny committee to do its job," he said.

Conservative leader Cllr Paul Kennedy, who backed the call-in, echoed the views of Cllr Murphy.

He said: "I am very pleased that they listened."

Warrington Collegiate first approached the council in April this year and has co-operated with Barclays, which it has a loan with, since speaking to the council.

Last Monday Lynton Green, the council's director of finance and information services, said the collegiate has put itself in its current 'position' by giving a 'notice to Barclays over debt.

The collegiate insists it has conducted itself with 'complete propriety' and has engaged with the council in an 'open and transparent' manner.

Principal and chief executive Nichola Newton added: "An investment proposal was submitted to the council, in line with other commercial arrangements the council has made, and has been subject to the council officers' rigorous due diligence.

"The proposal includes a number of capital investments which will enable the college to grow in pace with the ambition of the town and better meet the skills needs evident, as well as refinancing of the college's existing loans."

The scrutiny committee is set to discuss the matter in the first week of September, before a decision is made at the executive board on September 14.

The committee will be able offer no advice, in which case the original decision could be implemented, offer advice to the executive board or to refer the matter to full council.