The Chartered Institute of Public Finance and Accountancy (CIPFA) has warned councils about borrowing too much money to invest in shopping centres and commercial buildings. In a joint statement, CIPFA chief executive Rob Whiteman and the chair of the CIPFA Treasury and Capital Management Panel, Richard Paver, said local authorities should ‘avoid exposing public funds to unnecessary or unquantified risk’. The statement follows a series of high profile purchases by councils around the country, who are seeking to create new sources of revenue as the amount they receive from central government continues to fall. The statement reminds councils the both CIPFAs Prudential Code and the Statutory Guidance on Local Government Investments (3rd Edition) (Statutory Investment Guidance) issued by the Ministry for Housing, Communities and Local Government are very clear that local authorities ‘must not borrow more than or in advance of their needs purely in order to profit from the … (To read the full article, subscribe below)

Jamie Hailstone

Senior reporter – NewStart