The National Audit Office has produced an 82 page Report on “Local Authority Investment in Commercial Property”. The Report makes Recommendations for MHCLG, HM Treasury and CIPFA. The Report’s “Key Findings” include with respect to risks and risk management and the Government’s “stewardship role”. The Report’s Conclusion on Value for Money are summarised as follows:-
“26. The acquisition of commercial property can enable authorities to generate income in the context of financial pressure, while also supporting regeneration. However, the scale of investment of public funds in this activity in the last three years, the concentration of this activity in a relatively small group of authorities, and the use of borrowing to finance such investments is striking. The benefits from this investment therefore must be considered against the potential financial sustainability and value‑for‑money risks that have emerged. Read more »