Decision details

Decision:

The Executive approved the draft Asset Disposal Strategy set out at Appendix 1 and noted the Equality Impact Assessment at Appendix 2 of the report.

Reason(s):

To set out a strategy to generate capital receipts through the sale of assets to meet the £50M (net) target as part of the Financial Recovery Plan to reduce Council debt to achieve a sustainable financial position.

Other options considered and rejected by the Executive:

1.       Do nothing and continue to adopt a business-as-usual approach to disposing of the Council’s surplus owned assets without an approved Asset Disposal Strategy. This option is not recommended as it is highly unlikely to deliver the targeted capital receipts of £50M net by March 2027.

2.       Proceed with the Asset Disposal programme ignoring political, local community and any other sensitive issues along with all operational requirements of the Council’s service teams whilst basing any decision to dispose of an asset purely on economic grounds. This option is not recommended due to the inability of the Service teams to function without suitable premises and the likely objections that this would raise.

3.       Proceed with the Asset Disposal programme ignoring operational service requirements for use of selected assets. This option is not recommended as for each impacted Service to continue operating, it would likely result in the Council needing to fund the purchase of alternative premises.

4.       Proceed with the Asset Disposal programme without first investigating any legal issues such as restrictive covenants and planning issues which may need to be resolved prior to placing an asset on the market. This option is not recommended due to the risk of sales falling through and possible reputational damage to the Council, as such encumbrances could potentially frustrate the sale of an asset completing.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.