Since 2010, local government has seen funding for core services reduced by as much as 40%. Under these challenging circumstances, it is perhaps no surprise that councils have sought alternative finance to maintain services.

One way that many local authorities are making up some of the shortfall is investment in commercial property. Local authorities are making use of their right to borrow cheaply from the Public Works Loan Board to invest in assets around the country, allowing them to benefit from long-term yields that are higher than the cost of borrowing.