Issue - meetings

The Committee received an update on the current progress of the Assets Disposal Programme. To date, 20 property assets had been approved by Cabinet as “surplus” and Member approval was sought for a further 8 properties, as set in Appendix 3 to the report, to be recommended for marketing.

In response to a Member question relating to the sales process for the sites, the Executive Director of Housing and Property clarified that although direct bids were welcome; all interested parties would be required to apply through - and comply with - the appropriate agreed procedures. An open and competitive process would be carried out to ensure that the Council achieved best consideration from asset disposals.

The Cabinet Member for Financial Oversight and Council Assets highlighted that the asset disposal programme had generated capital receipts of £172.745m to date. It was expected that sales currently in the pipeline, plus repayments of loans to third parties would take the total to in excess of £210m by 31 March 2023. The Council would therefore have achieved its original target to generate £200m of capital receipts by 1 April 2024, 12 months earlier than expected. As a consequence, the forecast Minimum Revenue Provision charge for 2023/24 had more than halved to £11.566m. The impact on interest charges was largely neutral because although the Council has been able to repay a substantial amount of temporary borrowing, increases in interest on the remaining temporary loans had matched the interest savings from repaying borrowing. Temporary borrowing was £218m at 31 December 2022, which was virtually half the £406m outstanding at 31 December 2021.

In agreeing to bring forward from 2023/24 the additional 8 properties as set out in the report, would substantially accelerate the asset disposal programme. The Council would thus be well placed to generate sufficient capital receipts such that it would be able to fully repay all temporary borrowing by September 2023 and well ahead of schedule to fully fund the Capitalisation Direction.

The Committtee welcomed details of the report, in particular that the programme was ahead of schedule in terms of generating recepits which would contribute significantly towards improving the Council’s overall financial position. 

Resolved –

a)  That current progress achieved in the disposal of assets where authority has been approved by Cabinet be noted.

b)  That the status of the pipeline of future assets being brought forward for disposal be noted.

c)  That the declaration of the assets listed in Appendix 3 be approved as surplus and to delegate authority to the Executive Director of Housing and Property, in consultation with the appropriate lead member and the Executive Director of Finance and Commercial, to market these assets for disposal.