THE Government has published proposals calling on local authorities, including Surrey County Council, to be more open and transparent about their purchases of commercial properties for investment purposes.

The consultation, which closed on December 22, states that local authorities need to “demonstrate more transparency and openness and to make it easier for informed observers to understand how good governance and democratic accountability have been exercised”, and that “local authorities need to remember that their prime duty is to deliver statutory services for local residents”. 

The new rules, if adopted, will be introduced in April 2018 and take effect immediately, and have been welcomed by Surrey County Council’s Liberal Democrats group.

Hazel Watson, leader of Surrey Lib Dems, said: “The county council has not been very open or transparent about its purchases of commercial properties outside Surrey. The purchases include warehouses, retail developments and office blocks around the UK.

“To date, the county council has spent approximately £200 million on commercial properties outside Surrey, purely for income from rent. This is a hugely risky approach to gamble with council tax payers’ money and it is clear that the Government is becoming increasingly concerned that councils such as Surrey County Council could easily lose money as a result.”

Mrs Watson has called for a list of all properties purchased by the county council, including the amount spent by the council, the type of property and the address, to be made readily available on the council’s website.

She added: “Surrey residents have a right to know how their money is being spent by the county council. To put such large amounts of money at risk and hide it from members of the public is unacceptable.”

Responding, a Surrey County Council spokesman said: “We’re trying to generate the best possible return for the services Surrey residents value and will therefore consider investing in a range of appropriate opportunities when they arise.

“Sometimes there is a need for commercial sensitivity to ensure we get the best possible result, however we are looking to make this information public soon.”