Expenditure on commercial trading services rose from £323m in 2014-15 to £2.9bn in 2017-18, according to figures from the Ministry of Housing, Communities and Local Government.
The government report on the data said: “A large part of this increase is as a result of a rise in expenditure on acquisition of land and existing buildings.
“This has increased six-fold, from £280m in 2013-14 to £1.8bn in 2017-18.”
The figures, from MHCLG’s Local Authority Capital Expenditure and Receipts for England, showed that several authorities have spent “unprecedented amounts” of more than £200m on commercial trading services.
MHCLG also noted that the rise in commercial activity was also explained in part by the number of authorities spending smaller amounts – up to £50m – also increasing.
The data report said until 2016-17 authorities “rarely” spent more than £50m on trading services, but this year a record 12 authorities spent more than £50m. Together these 12 authorities spent a total of £1.5bn.
The two biggest spenders were Spelthorne Borough Council at £270m and Warrington Borough Council with £220m. Eastleigh Borough Council also spent £194m.
In August, Warrington’s accounts were delayed due to a complaint made about a £30m investment in a bank.
The data from MHCLG also showed a £2bn rise in the total capital expenditure by local authorities in England.
The total expenditure grew from £23.3bn in 2016-17 to £25.3bn in 2017-18.
Meanwhile capital receipts, gained for example from the sale of council property, fell from £3.6bn in 2016-17 to £3.3bn.
