Council launches investigation into housing company it owns

By Local Democracy Reporter Peter Davison

Wiltshire Council is to hold an investigation into a housing company it owns, with the Liberal Democrat-led administration saying the company has racked up debts of £53 million. 

The administration has announced it will commission “an independent full and forensic review of the structure and performance” of the Stone Circle companies. 

Housebuilder Stone Circle Development Company and Stone Circle Housing Company, which buys houses from other developers to let to key workers, including NHS staff, teachers, and emergency services personnel. 

It was established in 2019 by the previous Conservative administration and is managed by an independent board. 

Ian Thorn, leader of Wiltshire Council, said, “The Conservative administration promised that by 2026, council taxpayers would be seeing a £6 million profit supporting essential services and easing council tax bills. 

“Instead, the reality is that taxpayers are now propping up Stone Circle’s £53 million debt that is owed to the council. 

“I called for a review in February 2025, but the Conservative administration did not act. 

“Since taking office, we have queried the performance of the council’s property development companies, Stone Circle, against the original promises. 

“What we have found raises serious questions about how the previous administration managed its responsibilities to councillors and residents.” 

Cllr Thorn said councillors had been “kept in the dark” as debts mounted. 

He said that as of March 2025, the companies’ liabilities stood at £11.33 million, up from £9.98 million the previous year, while loans and charges owed to the council were at £53.36 million. 

He added that the value of properties had been written down by £5 million over two years. 

Cllr Gavin Grant, cabinet member for finance, added, “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.” 

In November 2024 councillors Clewer – then leader of the council – and Thorn – who was leader of the opposition – clashed over Stone Circle’s first new-build development of nine two- and three-bedroom homes at Priestly Grove, Calne. 

After progress on the development stalled for months, locals called it an “abandoned eyesore.” 

Richard Clewer, leader of Wiltshire Council’s Conservatives, said, “Cllr Thorn was a director of Stone Circle from 2019 to 2023 and I am not aware of him raising any concerns about the viability or operation of Stone Circle during that time. 

“If he was so concerned about the position of the company in February 2025 why has it taken him an entire year to raise the alarm? 

“I have not seen any of this information, so can’t comment on its accuracy. However, 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.”