Faced with an economic shortfall due to increased cuts, Southwark Council has initiated a crowdfunding scheme to raise £6m over the next six years to help fund climate-friendly projects.
The scheme plans to raise £1m to build cycle hangars, LED street lighting and green upgrades at schools and leisure centres.
The scheme also allows investments of as little as £5 and had raised more than £50,000 within hours of its launch on Tuesday [27 February].
It is open to individuals and businesses regardless of residency, with a fixed return of 4.6% a year over a five-year term.
Potential investors have however been warned that, as with all speculative capital investments, their return would not be forthcoming should the scheme fail to create its intended profits.
READ MORE: Escalating SEND transport budgets threaten councils’ financial stability, report warns
Figures from the Local Government Association (LGA) on Wednesday [28 February] show two-thirds of English councils are planning cuts to neighbourhood services this year – such as waste collection, road repairs, library and leisure services – as they struggle to plug funding gaps.
Birmingham, Nottingham and Woking Councils filed a section 114 notice in 2023, effectively declaring themselves bankrupt as the UK government sent advisors to assess spending cuts.
LGA estimates councils are facing a £4bn shortfall over the two financial years to 2024-25.
Southwark Council’s deputy cabinet member for green finance, Emily Hickson, said: “Southwark is not different to any other council in the country: we’re all struggling with the lack of central government grants and keeping up with inflation. We are in the black and that’s because we are being innovative.”
Achievements and innovations in city planning solutions will be celebrated at the third annual CiTTi Awards, which will be held on 26 November 2024 at the De Vere Grand Connaught Rooms in London. Nominations officially open in March 2024. Please visit www.cittiawards.co.uk to learn more about this unmissable event for the UK’s transportation sector.
