A £200,000 council loan to Morecambe Football Club has been approved by the District Auditor, it emerged this week.

He ruled that council bosses acted both lawfully and reasonably and that he would not be pursuing the matter any further. He made it clear he wasn't in a position to question council policy.

The probe was initiated after the District Auditor received various inquiries quizzing the legality of the loan designed to improve the club's facilities.

The District Auditor said: "It is not within my remit to question the lawful exercise of discretion by elected members. I have to confine myself to considering whether the council acted lawfully and reasonably."

Cllr Stanley Henig said he was delighted that the loan had been vindicated. "Given the superb start made to the season by Morecambe FC, it would also seem that the council has made a very good investment," he said.

The decision to provide the loan and also give the Shrimps an annual grant equivalent to the loan's interest had been approved unanimously by council members.

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