Financial commentators in the national press have voiced concerns that councils’ investment activity, especially in commercial property, is storing up problems for the future. And earlier this year the Public Accounts Committee expressed reservations about levels of risk, expertise and complacency from councils’ increasing commercialism.

Financial Times columnist John Plender wrote: ‘Local councils are borrowing at rates lower than the private sector can obtain in order to invest in property that shows a higher yield. Money borrowed at less than 3% interest is going into property yielding 6% or more.’