Joined: 11 Dec 2005 Posts: 4396 Location: Wales / Cymru
Posted: Tue Sep 17, 2019 11:09 am Post subject:
The public service gamble
n Investigation by the Bureau for Investigative Journalism
The public service gamble: Councils borrowing billions to play the property market
Some of the smallest councils in England have built up huge debts by buying supermarkets, business parks and offices, tying the future of their public services to the uncertainty of the property market.
Councils across England have borrowed massive sums - in some cases the equivalent of ten times their annual budgets - to finance the purchase of real estate, our investigation has found.
In the last two years, the number of councils investing in property has doubled. In the past financial year alone, councils spent a total of £1.8 billion on investment properties, a six-fold increase from 2013-14.
Of biggest concern is the scale of debts accrued by four of the smallest local authorities in England - including Spelthorne Borough Council in Surrey, which says it is “heavily reliant on investment income” to fund the services it provides.
Joined: 21 Nov 2005 Posts: 5462 Location: Hampshire
Posted: Tue Sep 17, 2019 2:07 pm Post subject:
ur councils have done the same. Shops in the tows are closing often with the excuse that on line shopping has overtaken them. So if the councils are relying on the rents, what happens now? Who will pay? Us, the mugs.
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