A BOROUGH council facing a '£670m debt' over the next few years is being investigated after it was deemed to be at “excessive risk” financially.

Eastleigh Borough Council (EBC) has been contacted by the Department for Levelling Up, Housing and Communities.

A letter from minister and MP, Kemi Badenoch, states that the government has introduced changes to give it more powers to tackle excessive risk within the local government system.

The local authority has now been written to and that letter has been shared by Eastleigh MP, Paul Holmes.

In her correspondence, Mrs Badenoch says that the council is “one of the authorities her department will be working with following the announcement, to consider what steps could be taken locally to reduce their level of risk".

The letter details that a plan will be agreed on to reduce EBC's “level of debt.”

READ MORE: Boris Johnson says MP is right Eastleigh council will be £650m in debt by 2025

Mr Holmes slammed the council in Prime Minister’s Questions just weeks ago, claiming that it will be in £670 million of debt by 2025.

Sharing the letter on his Twitter account, he added: “This excessive risk with your money has now prompted Government to investigate their 'excessive capital risk.”

When asked about the council at PMQ’s, Prime Minister Boris Johnson agreed with the Eastleigh MP saying: “My honourable friend is completely right about Eastleigh Borough Council and the debts they have run up.”

However, speaking to the Echo, leader of the council, Cllr Keith House said: “The government has contacted lots of councils to get confidence in their investment plans, including Eastleigh.

“We have already met with officials and explained how our investments have protected services, kept council tax down and created much-needed jobs and affordable homes.

“Eastleigh has a record of achieving ‘levelling up’ that we are proud of and welcome government interest as we hope this will help gain more funding to keep making our Borough a greener and more prosperous place”.

A message from the Editor

Thank you for reading this article - we appreciate your support in reading the Daily Echo.

Subscribing to the Echo means you have unrestricted access to the latest news, features and Saints coverage - all with an advertising-light website.

You will also have full access to Saintsplus, your new home for Southampton FC tactical analysis, features and much, much more.

Don't take my word for it - subscribe here to see for yourself.

Follow the latest breaking news in the Southampton area by joining our Facebook group - Southampton News - Breaking News and Incidents

Follow the latest court and crime news on our dedicated Facebook group - Hampshire Court and Crime News