Gravesham council has snapped up shops in another part of the county for £1 million as it steps up efforts to make the borough self-sufficient.

The authority has spent £1,030,000 on the freehold of 123-127 High Street, Sittingbourne, which is currently home to leaseholder Lloyds Bank, and subletters Paddy Power and Bluebird Care.

Lloyds' lease is up in 2022 and it currently pay £85,000 rent a year.

The council expects Lloyds to renew its lease and maintain a presence in the town due to the scale of proposed development there.

However, a report presented to cabinet on Monday stated that if the tenancy comes to an end it could have a significant impact on the predicted return.

It was also revealed there is overgrown land behind the site which could be developed.

Sittingbourne is currently undergoing a major regeneration with a seven-screen cinema and various new eateries planned in the town centre opposite the train station.

It reads: "There is significant development planned for the town centre and the High Street will potentially form the link between the various developments.

"As such, the general area could improve over time although there is a possibility that when the developments are first built the area is over-supplied with space.

"While the planning application for the new development suggests restaurant uses, this could change depending on demand. Sittingbourne is expanding rapidly and is in essence a standalone town."

Director for corporate services at Gravesham council, Stuart Bobby, said the move was part of the 'Bridging the Gap' funding strategy.

In total £20m will be invested in property which will result in an income of £1.3m a year as opposed to £100,000 per annum which would be generated by traditional bank and building society investment.

He added: “As part of a comprehensive strategy to bridge the funding shortfalls resulting from the on-going reductions in central government support for local authorities, the council has purchased properties such as the one in Sittingbourne to enable it to bring in an annual rental income which can then be used to support the valuable day-to-day services it provides to residents.

"The council has a published set of parameters to govern such acquisitions, and this particular property in Sittingbourne is the fourth such property purchase to be made under that strategy. These parameters cover the type of property that can be purchased, the process that needs to be followed, the minimum return that needs to be generated, and where the properties can be located.

“Gravesham is not alone within the local government sector in purchasing property, both within and outside of its borough boundaries, but is taking a prudent approach to such acquisitions by using in-house financial resources, rather than borrowing monies for such acquisitions.”