Although these two have been established by Rugby Borough Council, there don’t seem to be many of us yet. Although they haven’t started any initiatives yet, it is hoped that they will play a significant role in helping the council realize its goals.
Historically, local governments have had a rocky relationship with business endeavors.Although few in Rugby who were watching Question Time would have paid attention since they were unaware of Caldecott, Ian Hislop delivered a scathing critique of councils who overextend themselves.
He said: “One of the problems local councils face is they are desperately short of money, there’s a £3b budget shortfall so local councils start thinking, ‘how on earth do we raise money’.
It’s astonishing what some local authorities have tried to do to collect money and they have failed abjectly; this isn’t their job. Then they start attempting to become property developers or energy firms.
Although Rugby was being cautious, the Private Eye editor was referring to a few high-profile incidents where eye-watering amounts had been borrowed and things had gone horribly wrong, according to borough council leader Cllr. Seb Lowe.
“When it has succeeded, and it has succeeded more often than not, it has done so on a smaller scale, and that is what we are attempting to do.
“It is unusual for a local authority not to have a commercial entity and we are being cautious.
“It is about making money but we are also hoping to address our broader social and housing needs. Any money generated will be used to pay for services.”
The Advertiser became aware of Caldecott in January when the council issued a press release about the budget for the financial year ahead – we spotted the Caldecott name in the budget details and a possible allocation of more than £9m to help it develop homes on eight sites.
