Friday, Oct 16, 2020

And here comes the avalanche

Wolf Street: Highly Leveraged Commercial Real Estate Bets that UK Local Authorities Took to Meet Budget Shortfalls Begin to Unravel

For the last two years, KPMG has refused to sign off the accounts of Spelthorne borough council, a tiny local authority on the outskirts of London that has taken on huge amounts of debt to buy more than £1 billion of commercial and residential property, it has been revealed. The council has an annual budget of just £22 million, yet it has amassed more commercial property than just about any other local authority in the UK, all of it debt financed.

Posted by khards @ 08:58 AM (1056 views)
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3 Comments

1. mombers said...

Yet councils are not allowed to use the cheap funding to VERY cheaply meet their public housing liabilities. 25% of private landlords collect housing benefit, at a higher rate than non-profit council provided housing, with no obligation to provide a better service. Imagine the savings that councils could make if they could eliminate this waste, and the knock-on effect of tenants having more money to spend in the real economy.

Monday, October 19, 2020 08:44AM Report Comment
 

2. deepak said...

I read the article very interesting. If you read the whole story from the source, it get even better.
And in the comments, people are asking more councils to be verified.

And the main point for me, when its not your money and you have no accountability how you spend it. Enjoy..

Monday, October 19, 2020 11:46PM Report Comment
 

3. landofconfusion said...

“We’re not concerned about the capital value of the property because we’re not looking to sell it,” said councillor Ross Mackinnon, executive member for finance.

Now where have I heard that before?

"Yet councils are not allowed to use the cheap funding to VERY cheaply meet their public housing liabilities. 25% of private landlords collect housing benefit, at a higher rate than non-profit council provided housing"

Surly you can't possibly be saying we should reverse the Great Big Social Housing Sell-Off?

Wednesday, October 21, 2020 05:03PM Report Comment
 

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