The Prime Minister and MP for Eastleigh have slammed Eastleigh Borough Council for its “disappointing” management of finances and the “possibility of fraud.”

Eastleigh MP Paul Holmes accused the Lib Dem council of shunning accountability and transparency during Prime Minister's Questions on Wednesday. 

It comes after PM Rishi Sunak visited Eastleigh and hit out at the debt.

A recently published auditors’ report revealed the possibility of fraud in the borough council's major housing development - One Horton Heath.

The council has £522m worth of debt, but the local authority has said no fraud has been discovered.

READ MORE: Rishi Sunak slams Eastleigh council's 'excessive debt'

During PMQs in the House of Commons, Mr Holmes said: “The Lib Dem-run council in Eastleigh has just received a report from its external auditors warning of the possibility of fraud and ignoring whistle-blowers who tried to warn it.

“Does the Prime Minister agree that Lib Dem leaders who shun accountability, shun transparency and simply say, “Not me, guv,” should start showing some remorse and responsibility, or make way for those who will?”

This comes after Prime Minister Rishi Sunak hit out at Eastleigh Borough Council’s "excessive debt" during a visit to the town on Friday, January 19.

During the session in the Commons, the Prime Minister responded: “My hon. Friend raises an important matter to the people of Eastleigh, which I was pleased to discuss with him on my recent visit to his area, and I know that the contents of the report are deeply concerning.

“It is disappointing to see this Lib Dem-run council rack up debt with absolutely no plan for how to fund it.

“The council has been issued with a best value notice, and I know that he is talking to the Department for Levelling Up, Housing and Communities, which will be monitoring this situation closely.”

Eastleigh Borough Council is far from the only local council to be slammed over its finances, with Southampton City Council also coming under fire.

The Labour-run council was forced to make redundancies last year as it faces a race to save millions of pounds. Its chief executive has stepped down due to the pressures of the job.