By Paul Homewood
h/t Ian Magness
A real bit of journalism from The Telegraph for a change!
Green-led Bristol appeals to taxpayers as it struggles with a £52m funding shortfall
Cash-strapped councils are asking taxpayers to invest their savings in projects to help them meet their net zero targets.
Bristol and Hackney, which have both warned of severe funding shortfalls, have become the latest councils to launch investment schemes to help fund their environmental initiatives. The schemes invite taxpayers to invest in exchange for 4.2pc annual interest across a five-year term.
But experts said the deals risked “clear trade-offs” in terms of returns and protection for investors.
So far, 238 taxpayers have collectively saved £175,750 in the Bristol Climate Action Investment. Green-led Bristol, which has warned of a £52m funding gap, said the money raised would help fund heat pump installations, solar panels and energy improvements in its own offices.
Meanwhile, 103 have invested £128,345 in Hackney Council’s green projects, including funding energy efficiency improvements at a local school. Hackney councillor Robert Chapman, said the scheme provided a “cost-efficient way for councils to finance climate action”.
In total, 15 councils have launched the investment products, according to Abundance Investment, the financial provider.
Read the full story here.
As the Telegraph notes, the investment is not as safe as it sounds. Apparently, as it is peer-to-peer lending, it is not covered by the Financial Services Compensation Scheme (FSCS), which can protect up to £85,000 of your deposit if the provider goes under. It is also unlikely that they would easily tradeable on the bond markets, if investors wanted their money out.
And if councils went broke as Thurrock did last year, it is not guaranteed investors would get their money back.
The interest rate of 4.2% is frankly pathetic for such a risky investment. Councils like Bristol would have to pay much higher rates in the market, and are gambling on the naivety of people who believe in their climate emergency nonsense.
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BEWARE GREEN COUNCILS ASKING FOR MONEY!!
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