Cash-strapped council makes GBP700,000 by lending to banks.

(From Derby Evening Telegraph)

Byline: CHRIS MALLETT

A COUNCIL making staff redundant and cutting services made a GBP700,000 profit - by loaning money to Britain's crisis-hit banks during the credit crunch.

Derbyshire County Council loaned Barclays Bank GBP3m and Lloyds GBP5m at the height of the troubles in 2008.

Both loans, it has now been revealed, were paid off over two years with the council earning about GBP700,000.

This cash is helping the authority achieve the GBP99.6 million of savings it needs to make over the next four financial years due to Government cuts.

Many councils loan out cash reserves to increase the …