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Guildford Council Drops Investment Plans

Posted by Richard Ward in ,

Image courtesy of Flickr, Creative Commons

Guildford Borough Council has suspended plans to spend £81 million on student accommodation.

Plans to invest in student accommodation have been dropped after it was decided it would not provide an adequate return for the council.

Council leader Paul Spooner, said: "For this to be worthwhile for the council the income over the set period would need to justify the initial investment as the council would not own the asset and at the end of the set period the income would stop and the council would have no responsibility for the asset that is owned by a third party."

"The council was not satisfied on the ROI over the period and hence the budget provision is not necessary."

Although Mr Spooner recognised the business case for investors to put money into the sector was strong, he decided any investment from the council would be put on hold for the foreseeable future.

Since reports emerged that the council approved the investment, several other proposals have been put forward, including plans to replace the Casino nightclub in Onslow Street.