In an ideal world, Cathy Mitchell wouldn’t have to spend her time worrying about a £1bn-plus investment portfolio. The former barrister and deputy leader of Warrington borough council would usually have her mind on schools, adult social care and bus services, with the investments looking after themselves. But things are far from normal for the Cheshire borough or its book of assets: one of its flagship stakes – a 50% share in stricken firm Together Energy – is reportedly on the verge of going up in smoke. Warrington has followed councils across the country in ploughing cash into commercial schemes in the hope of generating returns that can offset a decade of Conservative austerity. However, critics say the Labour-run council has taken the high-stakes strategy too far: putting public money into risky ventures in property, energy and finance – including some firms backed by super-rich Tory donors. “I would rather not be involved in investments as we have better things to do,” says Mitchell, who is the council’s portfolio holder for corporate resources. “But as long as we aren’t funded properly by the government, I don’t feel we have much choice.”
Observer 15th Jan 2022 read more »