Reigate and Banstead Borough Council will set up a property and investment company to meet funding challenges.  

The company will help plug the Council’s future funding gap caused by the termination of a government grant. The Council has said that to be financially stable by 2018, it needs to generate additional, secure sources of ongoing income such as rental income from property assets.  

The company will be a commercial trading company wholly owned by the Council. It would be funded through a combination of council reserves, the Public Works Loan Board and commercial sources.  It is expected to generate a minimum of 6% return on investment. Some of the Council’s existing assets will be transferred to the company.