Published: 19th Jul 2019

Babergh and Mid Suffolk District Councils property investment company is generating £1.4m a year for the cash-strapped local authorities, according to a new report. Councillors will meet next week to discuss the draft business plan for CIFCO Capital, which is wholly owned by local authorities, was established in 2017 to generate income through property investment. According to the council report, the company has 12 properties spread across the Eastern region. After borrowing costs are taken into account, the report states it has generated £786,000 for Babergh District Council and £676,000 for Mid-Suffolk District Council this year, which is equivalent to raising council tax by 12.9% for local residents. The report also describes describes a ‘strong first full year of trading’ but CIFCO chairman Chris Haworth admits that the board has had to contend with a changing market. ‘This year has presented a number of challenges, in particular the disruption in … (To read the full article, subscribe below)