Lancashire council goes into the loans business

Sarah Coles
Council building
Council building

John Giles/PA Wire

It seems like an odd development for councils, given that so many are struggling to make ends meet at the moment, but Lancashire County Council has decided that the best way to kick-start local businesses is to lend them money. It has set up a partnership with a peer-to-peer lender, which it says will plough much-needed funds into local firms.

So how will it work? And will it take off elsewhere?