A CHANGE in how council reserves are invested is set to more than double the return on its investment.

While interest earnt from lending was £158,000 in the last finacial year, that figure is projected to rocket to £360,000, said a Forest of Dean Council spokeswoman.

It follows the council switching from lending to financial institutions such as banks and local authorities at a time of sustained low interest rates to investing resources into, pooled funds, resulting in a more diversified investment portfolio.

The council’s Cabinet made the “informed decision” to change tack last February, and this has now started to pay off, added the spokeswoman, resulting in a 127 per cent projected rise of £202,000.

Cllr Richard Leppington (Bream, UKIP), Cabinet Member for asset management, said: “As the council suffers more cuts to our funding from central government we need to become more business-like in using our own resources.

“I’m really pleased to see that our new investments are already showing an improved return. We will continue to invest in this and other areas to make Forest of Dean District Council more financially independent.”