Council commissions review of housing companies amid ‘serious financial concerns’

Stone Circle also saw losses of £1.35m in 2024-25, following losses of £5.6m the previous year, according to the figures cited by the administration.

Mr Thorn took up office in May 2025 and served as a director at the Stone Circle companies between 2019 and 2023. He said: “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.”

Gavin Grant, cabinet member for finance at Wiltshire Council, 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 £53m of borrowed money. They deserve to know the truth.”

The decision to commission an external commercial review of the two housing companies was made at a recent shareholder group meeting by four representatives of Wiltshire Council’s cabinet.

A council spokesperson said: “The review will consider how the companies operate and whether any improvements can be made. This is a review and not an investigation.”

The Stone Circle companies were set up to provide affordable homes for local people and to generate a “fair financial return that can be reinvested back into Wiltshire’s housing needs”, according to its website.

By the end of 2025-26, Stone Circle plans to deliver almost 300 homes through a mix of new-build developments acquisitions.

Richard Clewer served as leader of Wiltshire Council between 2021 and 2025, as well as been a director at Stone Circle between 2019 and 2021.

Of the account figures cited by the Liberal Democrats, he said: “I have not seen any of this information so can’t comment on it’s 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.”

He said that all development companies have experienced “extremely challenging” viability issues due to a significant rise in build cost inflation. 

Mr Clewer added: “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.”