Blackpool BC is set to loan an NHS trust £27m to enable it to restructure its debt and invest in frontline services.
A report to Blackpool’s executive committee said the council loaned Blackpool Teaching Hospitals NHS Foundation Trust £9.2m last year for its transformation programme and to “bolster its working capital”.
The loan was the first made after Blackpool increased its business loans fund from £10m to £100m in 2017-18 and was secured against the trust’s car park.
The latest loan, which is due to be considered by the executive committee on 21 May, is unsecured and issued “on the basis that all liabilities of a foundation trust are protected by the Department of Health”.
Blackpool’s business loans panel has recommended approval of the loan, with a repayment term of 25 years.
The report says a detailed assessment of the trust’s finances has not been carried out.
It added the loan would address the council’s priorities of economic growth and community resilience.