CONCERNS have been raised over local authorities investing in retail parks in a bid to raise revenue.

The latest government data shows that £4 billion was invested by councils in land and buildings in 2017/18, an increase of 43 per cent from the previous year. Nearly half of it is thought to have been for investment purposes, much in retail property.

Yet the sector is currently struggling with its biggest crisis since the 2008 recession, according to the Centre for Retail Research.

Its Retail At Bay 2018 report states: "In the first 100 days of 2018, 18 large and medium-sized retail companies collapsed into administration involving almost as many stores and certainly more jobs (13,500) than in the whole of 2017.

"Six retailers are using CVAs to close 286 stores (6,000 employees at risk), the Homebase group has been sold for £1 (11,500 jobs at risk) and other retailers including M&S daily announce closures and partial retreat."

Councils are supposedly prohibited from borrowing money to speculate or invest purely for profit, although they are permitted to "borrow in advance of need".

The latest figures also show council borrowing, taking advantage of low interest rates, rose to £10bn in 2017/18. Bournemouth council says its borrowing is low compared with similarly-sized authorities.

It says a £100m investment in commercial property will typically yield £1.5m of income a year.