Local authorities are likely to be banned from investing in commercial property for the purpose of boosting revenues.
An inquiry by MPs into the £6.6 billion spent by councils on commercial property in the past three years asked how officials were controlling risks to their financial sustainability. Minutes of last week’s public accounts committee hearing were released yesterday.
Jeremy Pocklington, permanent secretary at the Ministry of Housing, Communities and Local Government, said: “A consultation has been launched by the Treasury. In future, assuming that we implement the proposals set out in the consultation, councils will be prevented from investing in commercial property and from accessing the Public Works Loan Board. That, we think, will stop councils not only borrowing, in particular, but investing in these
John Hoole Estate Agents Source: The Times - Thursday May 21 2020