Somerset County Council could invest up to £60 million in property over the coming years in a bid to generate more revenue for public services.

The council already has £10 million in a local authority property fund, which is invested on its behalf and generates a healthy financial return.

Councillors have voted to increase this amount of money being allocated to this fund, as well as exploring ways to invest more in the council's existing property.

The Liberal Democrat opposition has warned that all the best commercial investments in the local area may have already been snapped up by Somerset's four district councils.

The new investment strategy comprises three parts which are inter-related:

Increasing treasury management investments: in 2017 the council invested £10 million into a property fund, which invests money on behalf of local authorities, religious bodies and charities. The council is currently earning a four per cent return on these investments (i.e. above inflation) and is looking to increase the amount it has in the fund to £60 million. Jason Vaughan, the council's strategic finance manager, said this could generate £1 million additional income over the next two years

Investing more money in existing council property: where the council already owns property (such as County Hall in Taunton), it will invest money in these assets through its capital programme, either to generate more ongoing income (i.e. more rent) or by making it worth more ahead of any potential sale

Buying more property: the county council is less likely to pursue this line, already being used by Somerset's district councils, following a rise in the cost of borrowing from the Public Works Loan Board. Mr Vaughan said this option was "now less attractive and more restricted", but added that a framework could be put in place to allow for due diligence if an opportunity to invest arose at short notice

The strategy was approved by the full council in Taunton on Wednesday morning (January 22).

Council leader David Fothergill said: "What we have got here is a very broad view on this issue.

"C Block in County Hall is about to become vacant in the next few months as we move back to A Block, so that is a huge opportunity."

Councillor Liz Leyshon, the opposition spokeswoman for resources, welcomed the strategy but sounded a note of caution about how assets should be managed.

She said: "In the last ten years, around £90 million of assets has been sold off by this council.

"A building can be as much a liability as an asset, but the real asset is green and pleasant land – and much of it has already left this council.

"With the districts having moved so fast on commercial investments, my concern is there are no real investments left."

The council voted unanimously to approve the new investment strategy.