OXFORDSHIRE County Council has lent £10m to an under-fire neighbour – but expects to get all of it back.

The council loaned Northamptonshire County Council £5m in October and another £5m in December.

Last month Northamptonshire banned any new expenditure, with leader Heather Smith blaming a 'perfect storm' of cuts and increased demand.

Oxfordshire council said it is 'routine' for councils to lend money to each other and loans are effectively secured by Government.