IS it better to save a lump sum for a rainy day you know is coming or invest it in a property you’ll wholly own in ten years?
That was the issue as Labour and Conservative councillors clashed at Tuesday night’s borough executive committee meeting.
On the table was a recommendation to buy the leasehold of Crossgates House, the council’s Park Farm depot in Park Farm, from the county council for £145,000, using money gained from the sale of Threadneedle House in Alcester Street.
Councillors heard the borough was currently renting the property for £14,745 per annum, a sum likely to increase, but if they bought it the savings in rent would pay for the entire outlay in ten years or less.
However Conservative councillors argued that, given Redditch’s drastic cut in the Government’s revenue support grant it was better to hang on to the money and not spend it.
On the other hand Labour members said buying the house represented sound use of council money and would lead to long term savings.
“I find it absolutely staggering that, despite the challenging circumstances that this council finds itself, in the controlling group plans to spend this money to buy a building,” said Coun Juliet Brunner (Con, M’boro).
However Council leader Coun Bill Hartnett said the authority would be gaining a valuable asset and that financially it was prudent.
His colleague Coun Fisher (Lab, M’boro) agreed: “Over the ten years we will have spent the same amount of money in rent without owning the building, so this is the right thing to do.”
The recommendation was carried with two votes against.
