A HUGE £12 million deal over buying a prime Worcester leisure complex can today be revealed - controversially helping prop up council services in SURREY.

Worcester's big Vue cinema and a collection of other units including Subway, Nando's and 13 apartments in Friar Street have been sold for a whopping £11.8 million.

But under the unusual deal the land, in an iconic city location, has been bought by Surrey County Council 120 miles away as part of a "long-term investment strategy".

It means people using the site will be propping up public services in Surrey, with its council responsible for transport, adult and children's social care and public health.

But the sale has sparked dismay in Worcester, with critics demanding answers on why Worcestershire County Council did not try and grab the land.

In recent months increasing numbers of councils desperate to avoid cuts have been turning to real estate in the belief it will prove a long-term money spinner, using low-grade Government borrowing.

Bosses in Surrey have gone as far as saying it will "help secure Surrey's future".

Worcester's Vue cinema complex is far from the first sale of its kind - a deal was recently struck for a massive shopping centre near Newcastle to become council-owned as well as Kent, with investors saying the tactic is becoming increasingly popular in the race to own leisure destinations.

Five deals have gone through this year so far, with several more lined up in the face of ongoing Government funding cuts.

The Worcester site had been on the market for some time and is thought to be potentially lucrative, with experts saying shopping destinations typically bring returns of eight per cent or more – and that rate climbing as new development goes on around it.

The land in question spans more than 37,000 square foot, with room for extra development if needed.

Cllr Peter McDonald, Labour group leader at County Hall, said: "I'm absolutely disgusted with this deal, prime land in Worcestershire should not be used to subsidise other authorities.

"The Worcester pound should stay in Worcester, not used to prop up other councils miles away.

"This also shows a complete lack of vision at Worcestershire County Council - we bang on about being 'open for business' but what message does this send out?

"The council hasn't got an investment strategy, so we've ended up allowing Worcester people to subsidise another local authority and help their public services."

Bosses at County Hall say they would rather focus investment on road infrastructure, pointing to the efforts to dual Carrington Bridge and the Southern Link Road.

They also say the new Place Partnership, a joint deal with the likes of the fire service and police, is aimed at merging property rather than proactive investment.

Cllr Ken Pollock, cabinet member for economy, skills and infrastructure, said: "I wasn't aware the complex was for sale, but it's not been our policy to buy property.

"We have the Place Partnership which is intending to rationalise property and make better use of assets, and we're much more interested in improving our infrastructure like the A38 and Carrington Bridge."

Cllr Andy Roberts, cabinet member for transformation and commissioning, told the Worcester News he felt it was a sign of confidence in the Worcestershire economy and added they were always interested in “targeted acquisitions”.

The council is investing around £142 million into capital spending this year and in the current budget has around £13 million of reserves, as well as a borrowing strategy of £349 million.

It is tasked with saving £58 million over the next two years but the vast majority of top-tier authorities are in the same position, with real estate becoming the latest idea for income, typically funded by low-grade Government borrowing or one-off capital.

The Surrey deal was handled by BNP Paribas Real Estate, which insisted the return on the site is a yearly money-spinner.

Investment director Andrew Meikle said: "The location is already the core Worcester leisure destination, and the surrounding area will only get stronger due to the development of more leisure space in the vicinity."

A Surrey County Council spokesman said: “Our grant from central government was reduce by nearly half this year despite demand for crucial services in Surrey continuing to rise.

"This new income will help us continue to provide the vital services Surrey residents need, helping us secure Surrey’s future."