Harrow Primary Care Trust has finally agreed to pay off a £7.7m debt owed to Harrow Council following years of negotiation.
The PCT has been in debt to the local authority for years following a dispute over who should pay for care services in Harrow.
Agreement and payment of the debt, which covered a four year period going back to 2004, was reached following a long series of meetings between senior Council and PCT officers - including both Chief Executives.
The Audit Commission had previously raised concerns about the dispute with Harrow PCT, given the value of the debt involved. This settlement represents a significant milestone for improving the financial scores and, consequently, the overall standing of the Council when it comes to the Audit Commission's inspections.
Councillor Barry Macleod-Cullinane, portfolio holder for adults and housing, welcomed the settlement with Harrow PCT.
He said: "We have held a 'tough line' over a number of years with Harrow PCT over this debt and are delighted with having achieved such a successful resolution.
"This is a major step forward for the council's finances - and this will contribute significantly towards the council leadership's efforts to improve the Audit Commission's overall rating for Harrow and, most importantly, the services that we deliver for our residents."
Sarah Crowther, Harrow PCT Chief Executive said: "We have worked hard to resolve this debt and will continue to work closely in partnership with Harrow Council."