An inquiry has been launched by the Public Accounts Committee into the circa £6.6bn spent by local authorities buying commercial property since 2016.
It follows a National Audit Office report published in February, which found there had been a significant increase in out-of-area commercial property acquisitions and that changes to the statutory guidance by the Chartered Institute of Public Finance and Accountancy and the Ministry of Housing, Communities and Local Government had not stopped some authorities from borrowing large sums to invest in commercial property.
Officials from the MHCLG will face questions from the committee on 11 May into the commercial skills gaps in local government and how extensively the department formally monitors the commercial activity of local government and assesses the risks.
