NORWICH City Council has bought a Travelodge in Harlow for more than £6m, it has been revealed reports the East Anglian Daily Times.

The city council, which had already spent millions to buy a gym in Kent and a cold store in Corby, bought the Harlow hotel for £6.2m last November.

The hotel is situated next to Harlow railway station.

Leaders say, against a backdrop of dwindling government grants, it is increasingly having to look at other ways to generate money.

The authority says commercial investments bring in rent, while future sales would generate more cash for the council.

Paul Kendrick, Labour cabinet member with responsibility for financial and investment management, defended the purchases. He said: “We are planning to continue to invest in commercial properties in the next year and build on the success of previous purchases.

“The aim, as it has always been, is to generate much needed income from the rents which goes on to support council services and deliver the vision for the city.”

But such purchases have been controversial.

Martin Schmierer, leader of the opposition Green group at City Hall, questioned whether such investments are prudent.

He said: “It’s no secret that the commercial sector is struggling, yet we are taking out loans to purchase these properties.

“They may be making a return now, but I wonder if that will be the case five to 10 years from now and whether the council will be able to sell them. This is taxpayers’ money.”

Mr Schmierer said he would rather see investment in schemes such as solar farms, which he said brought an environmental and economic benefit.