Asset Disposal Strategy

At its meeting on 21 July 2010 Finance Scrutiny Sub-Committee considered the Emergency Budget report prior to its consideration by Cabinet and Council the following week. The report included the following recommendation adopted by Cabinet/Council:

"To delegate authority to the Executive Director for Finance and Resources in consultation with the Cabinet Member for Finance and Resources to collectively implement a programme of disposal of properties in order to close off the funding gap of the capital programme, and provide funding for an Investment Programme, prioritising disposals of expensive or strategically surplus properties. This process will be by means of the appropriate policy, governance structure and consultation mechanism for asset disposals."

It was estimated that £100m was required from asset disposals in the years to 2014-15 in order to bridge the capital financing gap. Despite having an asset base of £2.3bn once schools, council dwellings, roads and parks were removed the adjusted net book value of the council's asset base was under £200m. Generation of the required £100m would therefore require some difficult decisions.

The Commission was established to examine the asset disposal strategy and to look at the future of office accommodation at the Council and any appropriate links with the asset disposal strategy and the investment strategy.

The following terms of reference were agreed by Finance Scrutiny:

• To assess the principles upon which decisions will be made to either dispose of or retain assets to fund the capital programme
• To review gaps (unfunded elements) in the existing asset strategy/capital programme
• To understand how the disposals programme will fund the capital programme.

The Commission held two information-gathering sessions during November 2010 and finalised its report over the Christmas period.

Read the Asset Disposal Strategy Commission final report.

The recommendations formed the basis of an action plan in response to the commission's report. This was submitted to Cabinet on 7 February 2011.