COUNCILLORS have given the green light for Waverley Borough Council to borrow up to £30 million in its new strategy to invest in property to generate much-needed cash.

Councillors agreed in October 2016 Waverley should take advantage of cheap state loans to help offset the funding shortfall caused by cuts to the borough council’s government grant.

In February, ministers imposed new curbs on councils using cheap borrowed cash to stake multimillion-pound bets on the commercial property market.

Local authorities must take more care to avoid undue risk when making investment decisions under guidelines from Sajid Javid, who was then housing, communities and local government secretary.

At Waverley full council on April 24, members agreed recommendations to spend up to £10 million on individual property acquisitions and investments, and up to £30 million in total over a three-year period until 2021.

The proposal is that properties should be acquired that offer initial yields of at least five per cent to six per cent in the office, industrial and retail distribution sectors.

The council’s new investment advisory board, chaired by Ged Hall, portfolio holder for finance, will “review promptly” each proposal and take any further professional advice it needs before recommending it to Waverley Executive. If the committee approves the proposal, it will instruct council officers to bid for the property.

Waverley leader and Farnham councillor Julia Potts added: “Four properties invested in are already making yields of around £800,000, which has helped plug a hole in our funding. It will help provide crucially needed services for our residents.”

Waverley’s revised investment strategy will be reviewed every six months.