Merton Council has today (May 31) published details of an £186 million capital injection in its annual accounts following the January 2023 sale of CHAS 2013 Ltd, a wholly-owned subsidiary of the authority. This puts the council in a strong position to deliver on its ambitions to build a better Merton, that everyone can take pride in.

CHAS, a professional services company supporting the construction sector with safety accreditation, was created by the council, and has since gone on to become a successful international firm. 

It was sold to a US-based firm in January, with the total capital payment reaching £185.6m. 

As a capital receipt, the money cannot be used for the annual cost of providing services, and can instead only be used for one-off investments, and capital projects such as building new infrastructure in the borough. 

Council Leader Ross Garrod said the money received for the sale CHAS will, used wisely, give a real boost to the council’s ambitions for nurturing civic pride, creating a sustainable future, and creating London’s first borough of sport. 

The council will use £50million of the money to pay off half of its debt, mainly in paying off Government loans – which all councils can use to deliver major projects. By doing this, more money will be freed up to spend on maintaining and improving vital local services for residents.

In addition, a significant sum will be invested into Government-backed investment schemes – ensuring low-risk investment for residents that will generate another annual income stream. 

Around £75m will be earmarked to be used for major new projects in the borough – including building the first council homes in a generation, breathing new life into our town centres, and deliver new sporting and leisure facilities as part of our ambition to become London’s Borough of Sport.

Councillor Garrod said: “This capital injection is great news for residents – putting the council in a strong position to deliver on our ambitions to build a better Merton, together. 

“With government funding cuts now an annual event, it is more important than ever that we spend this money wisely – especially as it can only be spent once.

“That’s why we are prioritising paying down debt and making sound investments which will help us save money and generate income to reduce the impact of cuts from Westminster to council services.

“In the longer term, we will be earmarking around £75million to be used for major new projects in the borough – including building the first council homes in Merton in a generation, breathing new life into our town centres, and delivering new sporting and leisure facilities as part of our ambition to become London’s Borough of Sport.”