Derbyshire Developments Ltd will also provide cash for the council with all profits from the company returning to the local authority to fund front-line services.

Leading figures from the property world have been appointed to lead Derbyshire Developments with Jon McLeod being named chairman and Aidan Kelly joining as managing director.

Derbyshire Developments has already revealed plans to develop two sites in the county.

The first will see a former primary school converted into 28 houses, while the second site is a former council highways depot for which architects are currently preparing a planning application for housing.

Andy Botham, cabinet member for council services at Derbyshire County Council, said it needed to come up with new ways to bring money in as government grants continued to decline.

“Setting up Derbyshire Developments is a bold and innovative way to do just that.

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“By developing land we no longer need ourselves, we will keep the profits we make in Derbyshire.

"I'm delighted that the company is now up and running and look forward to seeing work progressing in Danesmoor [in Chesterfield] soon."

A further 10 sites have also been identified for development and the council has found 300 sites it no longer needs.

Derbyshire Developments will consider potential uses for all these sites as part of a strategic development programme.

"Derbyshire Developments is an innovative public interest company designed to generate returns for the people of Derbyshire, both in terms of the new housing and infrastructure it creates, and in terms of the income it generates for the benefit of council tax payers,” Jon added.

“I look forward to leading this exciting new project."

Meanwhile, Aidan concluded: "This is an exciting venture with the opportunity to both develop much-needed homes and 'profit with a purpose', that is, to help the county council to invest in critical local services."