UK Local councils are buying recklessly into the commercial property market , putting their finances at risk after budget cuts from the government left them needing to speed up the shortfall , according to author Dag Detter . The councils are borrowing at rates that are lower than those available to private sector borrowers and by investing in property – a high - yield , high - risk scheme – councils are tightening their balance sheets . Local government is one of the largest property owners in the UK , but a lack of efficient property management and increasing public debt is putting their finances at serious risk .
UK Local councils are buying recklessly into the commercial property market, putting their finances at risk after budget cuts from the government left them needing to make up the shortfall, according to author Dag Detter. The councils are borrowing at rates that are lower than those available to private sector borrowers and by investing in property – a high-yield, high-risk market – councils are jeopardising their balance sheets. Local government is one of the largest property owners in the UK, but a lack of efficient property management and increasing public debt is putting their finances at serious risk.