CIVIC chiefs have been accused of gambling with public money after approving plans to invest £30 million in the property market.

New Forest District Council wants to follow the lead of other local authorities and acquire a portfolio of assets that will generate enough rental income to help fund services.

Council bosses are planning to use £24 million of borrowed funds and £6 million from the authority's reserves to buy manufacturing and retail space.

The scheme, aimed at making the authority less reliant on grant funding following government cuts, was given the go-ahead at yesterday’s meeting of the council's ruling Cabinet.

Speaking at the meeting, council leader Cllr Barry Rickman said: "We will continue to both support our local economy and increase annual revenue with the new Asset Investment Strategy.

"This we will approach in a prudent and sensible manner. These are not easy decisions to take but we have taken these brave steps to ensure we maintain and improve frontline services."

But Cllr David Harrison, leader of the Liberal Democrat opposition group, accused the Tories of "playing Monopoly" with public money.

Speaking to the Daily Echo, he said: "Investments can go down as well as up. There's absolutely no certainty that the authority will profit from this. The taxpayer will be picking up the bill if it all goes pear-shaped.

"I believe the model for maintaining public services is the reliable, proven method of paying for public services by way of council tax.

"There are examples of local authorities doing well from investing but they went into the commercial property market at a time when prospects were very much better than they are now."

Cllr Harrison also addressed the council at last night's meeting, branding the strategy as a "cunning plan" designed to save public services.

He added: "It's an unnecessary risk with no plan B if the investments don't perform as you hope they will. Is it prudent ? I don't think so.

"Is it a more secure way of making sure that we have public services in five years, ten years or 50 years' time ? I don't think so."

Under the plan the council will create a property investment panel led by the authority's chief executive, Bob Jackson.

It will also include two senior councillors, Jeremy Heron and Michael Harris, who will have to be consulted if Mr Jackson or other senior officers want to sign off deals totalling up to £5 million.

But Cllr Heron said: "The paper is an enabling strategy that would afford the council the opportunity to take advantage of an investment prospect should it present itself.

"At this time there is no proposal being considered, nor any investment made. Should an opportunity present itself in the future it will be rigorously investigated ahead of the council making any financial commitment."

Last year Southampton City Council announced plans to invest tens of millions of pounds in properties across the country in a bid to bring in at least £1 million a year.

Local authorities are thought to have spent more than £1 billion on real estate in 2016.

They bought assets such as shopping centres and business parks, often using cheap loans from a Treasury agency called the Public Works Loan Board.

Speaking after last night's meeting, Cllr Rickman said: “This is the first step in enabling the council to have a sensible investment strategy for the future and action any opportunities that might be good for the taxpayer.

“The council has done nothing yet and has no immediate opportunities, but the strategy gives us the option to act should the right opportunities occur in the future.”