Commercialisation is no guaranteed cash cow, says Joe Simpson, but by taking a few lessons from the markets, councils may not only survive, but thrive

I t is fair to say local authorities usually go into commercialisation more out of necessity than choice. Few people start out their careers by saying: ‘I’m going into local government, so that I can shake up the private sector.’

It is essential authorities going into this area do so with their eyes wide open. The challenges are enormous, and the risks of failure considerable. It is also the case that many cash-strapped local authorities simply have no other choice.