Ashfield District Council to spend £100 million on property investments

The leader of Ashfield District Council has defended plans to spend a total of £100 million on investment properties to raise cash to offset Government cuts to its budget.

The authority spent £15 million last year including buying a hotel near Stratford Upon Avon.

New Ashfield District Council leader Councillor Jason Zadrozny.

New Ashfield District Council leader Councillor Jason Zadrozny.

Council leader Jason Zadrozny said this has brought the total spent on investment properties to £24 million so far, with a further £80 million planned over the next four years.

Coun Zadrozny said: ““Next year the Government take our revenue grant off us completely .

“We have over £2.1 million deficit next year, a £2.5 million deficit the year after and I want to keep providing services to our district not just the things we have to do but the things we want to do to make it a better place for our streets and our parks and out town centres.

“Investing in commercial property at the moment is the only game in town.”

He said : “All councils in Nottinghamshire are spending on commercialisation.

“Over the last three years Ashfield District Council has invested £24 million.

“The reason why is that it makes us £1.8 million a year back in profit which goes towards protecting our front line services.

“We have to plug that gap, bringing money back into the district.”

He said an investment property bought and recently sold had netted the authority £1.1 million in profit.

He added: “We are spending money any where we can that makes a profit for Ashfield , including buying properties here.

“We have bought Wilcos and B&M in Hucknall and all the profit goes back to the district.

That allowed us to employ four extra wardens and to go ahead with plans for Kirkby leisure centre. It was a policy started by Labour which we agreed with.”

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