Published: 18th Nov 2019

Finance experts have warned councils that any decisions about property investments must be made with ‘transparency and financial sustainability in mind’.  The Chartered Institute of Public Finance and Accountancy (CIPFA) has published new guidance about what is expected of local authorities who are taking out large loans in order to investment in property. In recent years, councils have invested in a range of property, including hotels, farms and supermarkets in order to generate additional revenue or make up a shortfall from central government. In September, New Start reported that South Somerset District Council had bought Glastonbury branch of B&Q for £4.4m. It came just weeks after the local authority bought the UK distribution hub of toy giant Hasbro in Newport for £2.78m. And last year, a report by the Bureau of Investigative Journalism revealed Spelthorne Borough Council in Surrey had borrowed almost £1bn from the Public Works Loan Board to buy … (To read the full article, subscribe below)