RULING councillors are set to agree to lend York City Football Club £2.1 million to help ease the club’s financial burden.

Financial experts Deloitte have scrutinised the club’s accounts, and City of York Council’s executive will next week be asked to approve a loan.

The money will allow the club to clear its debt to the Football Foundation, which was at a higher interest rate than the council loan will be.

City’s communications and community director Sophie McGill today urged the executive to approve the move, but fans and directors are likely to face another two months of uncertainty, because the council’s Labour group wants the final decision to be approved by the whole council when it next meets, in September.

Ms McGill said: “At the urgency meeting held on May 21, all party leaders voted in favour of taking over York City’s Football Foundation loan on the basis that an independent review of the club’s finances was undertaken by firm of accountants, Deloitte.

“From the director of city strategy’s extremely positive recommendations, it looks as though Deloitte was suitably satisfied with the results of their findings. We therefore now urge the executive to vote in favour of the recommendations as a matter of urgency in order to help to provide a bright future for professional sport in the city of York.”

Labour leader Coun David Scott said his party was committed to getting a community stadium that could be used by the football club and York City Knights Rugby League Club, but said millions of pounds could not be spent without proper checks.

He said: “When you are spending £2.1 million, the council has to be sure that money is secure and that it’s legal to make the money available.”

He said the council could invest up to £7 million in a community stadium, but said they would not get a second chance so had to do everything openly and democratically.

Council leader Andrew Waller, of the Liberal Democrats, said: “It’s a very crucial time for York City FC and the council is aware that we can only get a new stadium for a range of sports if we have paying tenants. For that reason, we want to make sure that the football club survives.”

He said a commercial loan would help the club while ensuring tax-payers’ money was protected.

Meanwhile, a spokesperson for Persimmon Homes said their long-term plans to build housing on City’s Kit Kat Crescent home were not affected by their announcement yesterday of 1,100 job losses.