Hammersmith and Fulham Council to borrow from residents for green schemes

A west London council wants to borrow money from its residents to make environmental improvements.

Hammersmith and Fulham Council has set up a green investment fund to spruce up its parks and encourage more cycling.

People living in the borough are being invited to put money into the scheme for five years, with a fixed return of 4.85% interest, the council said.

The Labour-run authority said it was a "low-risk opportunity" to invest in eco-friendly projects.

It is hoped the scheme will raise £5m.

There's a minimum outlay of £5 and investors are promised interest payouts every six months.

The money will be spent on parks, sustainable drainage systems which reduce flooding and pollution, and bike hangars and other secure cycle units.

The council claims it is the biggest local authority investment scheme of its kind and can help it become net zero by 2030.

"Investors know that their money is being invested in projects that will make a positive impact on our communities and people's lives," said Rowan Ree, the council's cabinet member for finance.

"It also means that the council can deliver climate and ecological projects cost-effectively, which will help save taxpayer money. It's a rare win-win."

The council said it was a cheaper way for it to raise money than the usual route, which is borrowing from the Public Works Loan Board.

In recent years, faced by cuts to funding, many councils have looked for creative ways to bring in extra income.

Some have run into trouble through excessive borrowing or property investment.

These councils include Croydon, Thurrock, Woking and Slough, which all issued Section 114 notices, effectively declaring themselves insolvent.

A spokesman for Hammersmith and Fulham Council said offering local residents a stake in its green investment scheme was completely different to authorities investing millions in private ventures.

London Councils, which represents the capital's 32 boroughs, said collectively they were heading for an overspend of £600m this year. This is largely down to the increasing demands of social care and homelessness.

Councils are hoping for an above-inflation grant increase and adjustments to housing benefit when the chancellor delivers his Autumn Statement next week.

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