Up to £20million could be invested in property in Epsom and Ewell to offset government cuts, the council agreed this week.

Epsom and Ewell Borough Council agreed to establish a commercial property acquisition fund at an Extraordinary Meeting on Monday, November 21.

The new fund, which could see as much as £20milion invested in properties within the borough, would be financed by borrowing from the Public Works Loans Board, a government-funded scheme used by local councils to fund much of their borrowing.

A council spokesman said borrowing rates are historically low, and that rental income would cover the council’s borrowings and provide a net income to support services.

From October: Epsom and Ewell Borough Council left with 'little choice but to accept' cuts in government grant

Councillors voted in favour of setting up the fund after it was announced that the council’s revenue support grant (RSG) – money it receives from central Government for the year ahead – would be cut off by 2018/19. In 2019/2020 the council will also have to pay back £620,000 to the government.

From January: Epsom and Ewell Borough Council faces quicker and more savage Government cuts than expected

The council currently owns a small portfolio of investments, with rental income generating about £1.1million a year.

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Councillor Eber Kington (pictured above), chairman of the council’s strategy and resources committee, said: “With central government funding ending, it is essential that we look for new ways of generating the money we need to fund the services our residents expect us to provide.

“Investing in commercial property will offer the council an independent stream of income that will help us become more self-sufficient moving forward.

“We will be investing money in long term commercial opportunities that are based within our borough.”

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