FINANCE

When it comes to commercialisation, we can't afford to do nothing

As councils rush to buy up commercial property, questions are being asked about the capacity and capability of the councils taking on these ventures. Hiba Mahamadi asks whether the risks are worth the financial reward.

‘Can councils afford not to invest in commercial property?' That's what Nick Tustian, chief executive at Eastleigh BC, wants to know. 

He doesn't understand why the Government and the national press are criticising local authorities for buying property to generate income. Given the impending cessation of government funding to local authorities by 2020, Mr Tustian and other council leaders believe this is the only way forward for local authorities. And they are confident they have the necessary skills to do so.

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