Gloucester City Council is to set up a board to raise money by buying and selling properties.

Senior officers the power to investigate investment opportunities and the council says its portfolio will worth up to £75m within the next 5-7 years.

Following similar moves by other local authorities, the council says its Property Investment Strategy will raise funds to help to protect council services.

It plans to seek an external partner with property experience to help identify and assess potential acquisitions and to help manage its portfolio.

Cllr Paul James, leader of the council and cabinet member for regeneration and economy, said: ‘Over the last six years the council has made savings in excess of £10m, however, like all local authorities, the council is faced with continued financial pressures.

‘We have to make £1.65m of savings in the current financial year alone, and property investment will be a step which many other local authorities have taken - they have proved this can be a successful way to raise funds.’

Test Valley BC also expects to rake in £1.3m from a project to generate additional income this financial year.

Photo: ©Ian S