A controversial decision by the Labour-run Cambridge City Council to “gamble” £10 million of taxpayers’ money in commercial property rather than invest in new homes has resulted in a loss of more than £500,000 in just two months.

The issue came to light in the council’s draft annual report which shows the £10 million investment now down-valued to £9.44 million that will be table at Civic Affairs on Friday of this week, where Liberal Democrats will seek answers on the draft report.

Cambridge Liberal Democrats are furious and have questioned the logic of Labour’s decision to invest such a large sum of taxpayers’ money in the volatile and risky commercial market.

Lib Dem Councillor, Rod Cantrill said: “It is outrageous to see over half a million pounds wiped off money that should have been put to work in a practical sense for the people of the city by building more homes for rent. This would have brought both a financial and a social return to the community.

“Instead Labour ignored good advice and put hard earned taxpayers’ money into the highly volatile and risky commercial market which has led to a loss of more than £.5 million. At a time when the council is facing financial hardship and tough decisions about the future or much-needed services, Labour took a risk and it has backfired resulting in a substantial loss in a very short time.”

Cllr Mike Pitt added: “During scrutiny of the proposals at the start of the year, the Labour ruling group ignored the concerns raised by Lib Dem opposition councillors on the nature of the investment and the size of the investment.”

Lib Dems will raise the issue at the council’s Civic Affairs Committee on Friday (June 26) seeking answers as to how the council finds itself in this position.

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