A report to Norwich City Council's cabinet blames changes to the housing market and economy for making its housing arm, Lion Homes, unviable.

The company, which is wholly owned by the council, was founded as Norwich Regeneration Limited in 2015 in the hopes of delivering more affordable housing and an additional income stream for the council.

However, the venture has faced strong criticisms and uncertainty in recent years, particularly after it emerged the company had lost £6m of taxpayer cash when homes in Bowthorpe were sold for less than they cost to build and the council was overcharged.

The cabinet is set to agree to liquidate the company at a meeting next week.

Alex Catt, leader of the Green group (Image: Denise Bradley) The move has sparked calls for an investigation from opposition councillors.

Alex Catt, leader of the Green group, said: "With taxpayers on the hook for millions, jobs at risk, vital new housing further delayed and suppliers worried about whether they will be paid, the Labour leadership........

© Norwich Evening News