Gloucestershire district council earns cash boost from property purchase - in Oxfordshire
By James Young | 24th July 2019
Forest of Dean District Council have made a £106,000 return on investment they made in an industrial estate - 60 miles away in Oxfordshire.
The council invested £1,567,750 in a unit on the Lakeside Industrial Estate in Witney in October last year.
The purchase was made with the intention of holding as investment and income generator for the council.
The council say that if the same amount had been invested in to what they call "traditional investments" the maximum return would have been £67,256 in the year.
Therefore the amount raised saw an extra £38,744 of revenue ploughed back into the council's coffers, all of which can go towards service delivery.
With the cost of running a recycling vehicle around £38,000 per year, the money could be put towards expanding its existing fleet of 11 active and one reserve vehicles.
It could also allow the council to maintain its discretionary grants budget without considering any reductions.
Councillor Richard Leppington said "The Council has set the parameters for me and my Cabinet colleagues to work within in terms of property investment and income generation.
"Our role is to make sure that this council prospers and will be here for the future of our area, continuing to supply the valued services that local people require.
"The Council should not ignore sound investment opportunities, even if they do fall outside of the Council's borders, especially when the returns are so much greater than from traditional investments."
Copyright 2019 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.