BY Local Democracy Reporter
Jason Noble

TWO Suffolk councils which have controversially invested millions of pounds into out-of-county retail, office and commercial property are set to sign off their investment firm’s business plan for the year this week.

Here is what they already own in Harlow

Princes Gate Retail Park, Harlow

CIFCO purchased the units occupied by Go Outdoors and Lewis’s in March 2018

Pasadena Trading Estate, Harlow

More warehouse property, one of two investments in Harlow to date. Completed February 2018

What is CIFCO?

CIFCO Capital Ltd is a property investment firm jointly owned by Babergh and Mid Suffolk district councils.

Its aim is to bring in income without the council having to raise taxes or cut frontline services.

To date, it has pumped £50 million into 12 properties, with both councils signing off a further £25m each for investment this year.

But just one of the properties is based in Suffolk and investment in retail properties has caused concern from opposition groups, who said there were inherent risks and called for that cash to be put into housebuilding locally instead.

At the joint scrutiny committee where the business plan was examined, company directors confirmed they were not looking to invest in any more town centre retail this year, but could instead evaluate retail sub-sectors like drive-ins, trade stores and local supermarkets.

Babergh’s full council will discuss the plan on Tuesday, before Mid Suffolk debates it on Thursday.

Accounts for the company’s first year revealed a £3.1m loss, which the board said was down to one-off purchase costs. However it aims to double the £1.4m income the firm brings in to the councils.

Suzie Morley, Mid Suffolk council leader, said: “Like all local authorities, we are under unprecedented financial pressure to deliver services to our residents.

“By careful investment through CIFCO we can generate alternative sources of income rather than make reductions to our services.

“We often hear the accusation we should be investing in our own districts rather than in property elsewhere – but it’s not ‘either/or’.

“The rental income we receive from the properties is reinvested within our districts, enabling us to invest in local regeneration and in meeting the needs of our residents.”