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Local Government: Investment

Question for Department for Communities and Local Government

UIN HL1190, tabled on 20 July 2017

Her Majesty's Government what assessment they have made of the scale of commercial property investment by some local authorities in recent years; and whether they plan to commission a risk analysis of the financial security of such investments in the event of a decline in property values or an upward trend in interest rates.

Answered on

2 August 2017

Over the past two years the scale and nature of commercial activity has increased significantly. When entering into borrowing or investment decisions, local authorities are required to have regard to a series of statutory codes. Officials have been monitoring developments in this area and are working with the sector to update the control framework with the aim of improving risk management and transparency of decision making.