Leaders in Warrington turned to commercial investing to make up for funding cuts, but now the plight of a small energy firm threatens to make that a gamble too far
In an ideal world, Cathy Mitchell wouldn’t have to spend her time worrying about a £1bn-plus investment portfolio. The former barrister and deputy leader of Warrington borough council would usually have her mind on schools, adult social care and bus services, with the investments looking after themselves. But things are far from normal for the Cheshire borough or its book of assets: one of its flagship stakes – a 50% share in stricken firm Together Energy – is reportedly on the verge of going up in smoke.
Warrington has followed councils across the country in ploughing cash into commercial schemes in the hope of generating returns that can offset a decade of Conservative austerity. However, critics say the Labour-run council has taken the high-stakes strategy too far: putting public money into risky ventures in property, energy and finance – including some firms backed by super-rich Tory donors.