A council facing scrutiny over a succession of disastrous investments changed its rules so that it could invest in a Monaco-based financier’s “junk bond” fund.

Warrington borough council removed a restriction on investing in high-risk debt in order for the deal to go through. It has been accused of failing to properly consult elected members before doing so.

The indebted Labour-run authority “failed to get the necessary permission” before it invested £10 million in the Altana corporate bond fund in 2018, according to a former Conservative councillor. The fund is part of Altana Wealth, a fund manager set up by Lee Robinson, an Australian investor based in Monaco.

Warrington, a town of 175,000 people in Cheshire, has invested more than £120 million in a series