Oxford City Council admits risk over £2.3m loan to Low Carbon Hub

Council admits risk over £2.3m loan to Low Carbon Hub

Council admits risk over £2.3m loan to Low Carbon Hub

First published in News

MORE than £2m of public money is being invested into a renewable energy company despite Oxford City Council’s finance boss admitting it might not get all the money back.

It is loaning £2.3m to community-based social enterprise Low Carbon Hub , which is issuing shares later this year.

But the council’s head of finance, Nigel Kennedy, said the “main risks” were the share issue might not take off and the council might not receive its total investment back.

Mr Kennedy yesterday told the council's executive the loan was “short term” and would generate about £34,000 in interest. Although that represents a simple return of 1.5 per cent, he argued the annualised rate of return was 5 per cent.

He told the Oxford Mail the hub start drawing down the funds this month at staggered intervals over six months. The £2.3m is to be repaid at the end of the six months.

Although the projects – installing solar panels for schools and businesses around Oxfordshire – will start in June, the share issue is not expected to be held until September or October, he said.

  • Our top stories

Jury told fire started because businessman thought best man was having affair with wife

Oxford Mail:

8:29am Friday 22nd May 2015

A HOUSE fire that forced people to jump for their lives was started by a businessman who accused his best man of having an affair with his wife, a jury heard.

UPDATE: Missing woman Rachel Selby from Banbury found safe

Oxford Mail:

3:16pm Friday 22nd May 2015

A WOMAN who went missing from Banbury has been found, police said

Person hit by train between Slough and Reading likely to affect Oxford rail services to London

Oxford Mail: A First Great Western High Speed Train

3:24pm Friday 22nd May 2015

TRAINS from Oxford could be disrupted after a person was hit by a train between Slough and Reading.

Teenagers arrested after robbery in Hythe Bridge Street

Oxford Mail: Thames Valley Police logo

3:23pm Friday 22nd May 2015

TWO teenagers have been arrested after a robbery in Hythe Bridge Street.

Oxford United stepping up interest in striker Ryan Taylor

Oxford Mail:

9:30am Friday 22nd May 2015

Ryan Taylor remains firmly on Oxford United’s radar despite the signing of Kemar Roofe, according to head coach Michael Appleton.

UPDATE: Broken down van removed from near Water Eaton park and ride

Oxford Mail: Traffic Alert general

7:54am Friday 22nd May 2015

ALL LANES have reopened on the A4165 Oxford Road after a earlier incident involving a broken down van.

Comments (5)

Please log in to enable comment sorting

9:37am Thu 12 Jun 14

Quentin Walker says...

If the Hub requires finance, let it approach professional lenders. The Council if there to run the City, not speculate on business ventures, however admirable they may be.
If the Hub requires finance, let it approach professional lenders. The Council if there to run the City, not speculate on business ventures, however admirable they may be. Quentin Walker
  • Score: 9

9:42am Thu 12 Jun 14

Dilligaf2010 says...

Iceland banks anyone?
Iceland banks anyone? Dilligaf2010
  • Score: 4

11:02am Thu 12 Jun 14

Myron Blatz says...

So Cllr Price and his Merry Persons can give an eco-bung of £2 million, while telling everybody else there's no money because of massive Tory-led Coalition and County Council spending cuts, affecting Oxford? Still, what do you expect from the Council which put all our money in Iceland's freezer? Wonder if all the Party Faithful would have voted for Labour in the recent City Council elections, had they known Cllr Price was about to throw yet more money down the eco-toilet of public spending?
So Cllr Price and his Merry Persons can give an eco-bung of £2 million, while telling everybody else there's no money because of massive Tory-led Coalition and County Council spending cuts, affecting Oxford? Still, what do you expect from the Council which put all our money in Iceland's freezer? Wonder if all the Party Faithful would have voted for Labour in the recent City Council elections, had they known Cllr Price was about to throw yet more money down the eco-toilet of public spending? Myron Blatz
  • Score: 7

7:39pm Thu 12 Jun 14

Dilligaf2010 says...

I've been asking for parking bays to be marked out in our, Council owned resident's car park, for 5 years........constan
tly being told there's no money!
I've been asking for parking bays to be marked out in our, Council owned resident's car park, for 5 years........constan tly being told there's no money! Dilligaf2010
  • Score: 0

8:23pm Thu 12 Jun 14

mytaxes says...

Are there no rules re councillors gambling with tax payers money? Is this why we did not get a council tax freeze like so many other councils? Is this why we now have to pay to recycle our garden waste? Is this why we now have to pay for pest control?


Does anyone know why there has been no work on the micro hydro at Osney lock for months? Isn't Barbara Hammond in charge of this also?
Are there no rules re councillors gambling with tax payers money? Is this why we did not get a council tax freeze like so many other councils? Is this why we now have to pay to recycle our garden waste? Is this why we now have to pay for pest control? Does anyone know why there has been no work on the micro hydro at Osney lock for months? Isn't Barbara Hammond in charge of this also? mytaxes
  • Score: 1

Comments are closed on this article.

Send us your news, pictures and videos

Most read stories

Local Info

Enter your postcode, town or place name

About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree