Authority must 'manage risk'

摘要

A council that invested almost 40 times its budget in property must 'understand and manage risk and its impact on future financial performance and sustainability,' a Local Government Association (LGA) finance peer challenge has urged. Spelthorne BC, which has an annual budget of £22m, has invested £914m in commercial assets since 2016. It has made a return of £50m, which, after costs, has given a £ 10m surplus that it has used to spend on services. The council has insisted it borrows the money at competitive rates and that without the income from assets it would have to cut services. It currently faces a budget gap of £2m for 2021/22.