Council launches review of housing companies it owns
The Stone Circle group is said to owe Wiltshire Council more than £50 million
Last updated 17th Feb 2026
Wiltshire's Liberal Democrats have commissioned an independent review into the financial position of the council-owned Stone Circle group amid concerns over substantial levels of debt.
Stone Circle is a pair of companies, one which buys and rents properties across Wiltshire and one which is a development organisation.
They were set up in 2019 by the previous Conservation Wiltshire Council leadership to address a housing shortage.
Concerns voiced 12 months ago
Council Leader Ian Thorn says he's long held concerns over the solvency of the companies.
"I called back in February of last year for a thorough review in public," he said. "I was deeply concerned by the level of losses that these companies were chalking up and the level of debt. They're both funded in their entirety by Wiltshire Council, so by taxpayers funding.
"We've got to a point now, nine months into this administration, where frankly we just need to open the books. We need an independent review and that's exactly what's going to happen."
Debts placing strain on council finances
Cllr Thorn emphasizes the importance of transparency, having called for this review last February due to mounting losses and a notable debt of £53 million owed to the council.
The debt, largely sourced from the Public Works Loan Board, impacts Wiltshire Council’s revenue budget due to accruing interest payments.
Thorn added, "We have to pay interest on that, which has a direct impact on the revenue budget of the council."
In commissioning this review, Cllr Thorn is seeking to assess the financial viability of Stone Circle, both entities being limited companies with an obligation to operate profitably.
The leader acknowledged that neither company appears poised to generate profits, prompting the necessity of the review to determine both what transpired and the corrective measures required.
The Liberal Democrats claim the accounts, as of March 2025, show liabilities are at £11.33 million, up from £9.98m last year, while loans and charges owed to the council total over £53m.
A commitment to openess
Cllr Thorn is promising transparency and accountability, stressing the importance of sharing findings with the public and through scrutiny processes.
He said, "It's all taxpayers' money. It's incumbent upon us to have a very thorough review and to really understand, frankly, what went wrong."
The review is anticipated to take a couple of months, with assurances from Thorn that once completed, the results will be widely disseminated.
Thorn concluded, "As soon as we have that report, it can be published and shared very widely."
The initiative underscores Wiltshire Council's commitment to transparency and fiscal responsibility, with an aim to address past challenges and navigate the future sustainably.
Cllr Gavin Grant (Cabinet Member for Finance) said: "I want to be clear: we are not prejudging what this full review may find. But we cannot ignore a pattern where financial difficulties are mounting and have been previously withheld from proper scrutiny either by our Audit and Governance committee or by full council.
"This Administration believes in transparency. We are committed to publishing the outcome of this review. We are bringing in independent experts to establish exactly what happened and why.
"Residents trusted this Council with over £53 million of borrowed money. They deserve to know the truth."
Conservatives "yet to see information"
Former Council Leader, and current opposition Leader, Cllr Richard Clewer said he hasn't see the details of the Scrutiny Task Group, so can't verify the accuracy of the figures.
He said: "There are national challenges around the viability of funding of social and affordable rent housing which have intensified in the last 12 months.
"I am aware that following the significant increase in build cost inflation, all development companies have found viability of delivery extremely challenging.
"I am told that Stone Circle is in a less severe position than many since the assets, the houses it purchases, will still be of significantly greater value than the liabilities which would allow a number of options for the clearing of debt at a future point, I have however not seen the findings of the Scrutiny Task Group which will provide clarity here.
"Stone Circle housing also continues to provide lower cost housing for people who are in need which provides additional savings and preventative support to the Council."