Earlier today, Woking Borough Council officially announced that it had purchased Wolsey Place Shopping Centre following a decision on February 2 to become sole owners. The cost is £68million, which has been financed by the Public Works Loan Board.

The aim of the purchase is twofold – to invest in an asset that will both appreciate in time and generate a healthy £1.5m every year for the council and to play a pro-active role in encouraging economic growth in the town - in this case by securing the future of a major retail space. There are, it must be stressed, no plans for the council to run the centre, this will remain with existing staff.

There will no doubt be those that criticise the council for taking on more borrowing. They will stand on the fact that Woking has borrowed more than almost any other district council and that this somehow indicates financial imcompetence. Not so. The act of investing in tangible assets on a long-term basis and generating net profits from those investments is using borrowing as a force for good. I won’t defend all of the projects WBC has invested – and I favour a debt-free position – but in this case, one has to consider the broader interests of Woking in the future.

The nature of local government finances has changed. No longer are councils about revenue income, support grants, non-domestic rates and council tax versus costs – they have a wider, enabling role to play through investment in communities. We aren’t the only council looking to be more pro-active economically. Surrey Heath has got pro-active with The Atrium development and there are other options for the future. Runnymede redeveloped its Civic Centre and Guildford has worked to improve its Civic Hall and Friary Centre infrastructure for years.

The difference is that we have already gone into the market while the money is cheap and we are ahead of the curve – as suggested by the fact that the Liberal Democrats also backed the purchase of the centre. I’m pleased we’ve got a consensus on this and hope it survives the election intact.

Traditional local government finance will fade out as more and more cuts have to be made and councils look to other means of raising revenue. Outsourcing only gets you so far and is politically challenging – far better to invest cheaply in strategic assets that will generate multiple benefits for both residents and the council.