Council chiefs have bought a £1.505million industrial unit - on a trading estate in Oxfordshire.

Forest of Dean District Council has put in a successful bid to take over the unit on the Lakeside Industrial Estate near David Cameron's home in Witney in Oxfordshire.

Councillors have set aside a £5million pot to invest in property in an effort to boost council coffers and the local economy.

But news that cabinet members agreed a £1.505million bid for the Oxfordshire unit, may raise a few eyebrows in the Forest.

The unit is nearly 60 miles away from the council HQ in Coleford and occupied by a fuel company on a long-term lease.

New Forest o Dean Disrict Council leader Tim Gwilliam moved his new team into the cabinet office. Left to right, Chris McFarling Green and Paul Hiett, Forest First, Richard Leppington UKIP, Roger James and Mr Tim Gwilliam Forest First

Councillor Richard Leppington, cabinet member for asset management, said: "At a time when government funding is diminishing, this purchase will contribute towards making the authority more financially sustainable so we can continue to invest in front line services and community development.

"Acquiring this property highlights the council’s commercial aspirations.”

“This purchase makes sound economic sense as the return on equity is equivalent to 6.45 per cent. "

He said the council would continue to review the local market "to identify further promising opportunities”.

Forest of Dean District Council offices in Coleford

Paul Jones, the council's chief finance officer, said: "The taxpayers of the Forest of Dean can be assured that significant due diligence and negotiations went into this acquisition, which complements our existing property investment portfolio.

"Our focus for future investments will concentrate on the local market which demonstrates the commitment the Council has in the strength of Forest of Dean’s current and future economic prospects.”