Agenda item

a)  That the positive progress that has been made in delivering the first phase of the Asset Disposal Programme as set out in Appendix 1 of the report to Cabinet Committee be noted;

b)  That a new Asset Disposal Strategy as set out in Appendix 2 of the report to Cabinet Committee be approved.

A report was considered on the recommendations of the Cabinet Committee for Asset Disposals from its meeting held on 14^th September 2023 in relation to the Asset Disposal Programme Update.  The Cabinet was recommended to note the progress of the first phase of the asset disposal programme and approve a revised Asset Disposal Strategy as at Appendix 2 to the report.

The appendices contained exempt information and were considered by the Cabinet during Part I of the meeting without disclosing any of the exempt information.

It was recognised that successful delivery of the asset disposal programe was central to Council’s recovery, stabilisation of its budget and meet the requirements of the Capitalisation Direction agreed with the Department for Levelling Up, Housing & Communities.  Excellent progress had been made in delivering Phase I of the strategy with sales of £196m completed in 2022/23.  In 2023/24 a further £11m of sales had been completed to date with several other assets at various stages of the disposal process.  The report set out an updated strategic context for future decisions to ensure that the approach taken with the second phase was appropriate and delivered best value.  Future phases of the strategy would include the identification of assets from the Council’s operational portfolio and this would require more detailed work to be undertaken, including making the links to the emerging Estate Strategy.

Councillor Matloob was invited to address the Cabinet and he asked why the sale of community and social assets had been progressed before the new strategy had been agreed.  In his supplementary question he cited examples including the sale of Unit 26 Wexham Business Village which was currently leased to an organisation associated with the Blackbeard MMA Community Hub which was a local sports club and Thames Valley Positive Support which operated from a site on Bath Road.  The Leader responded that Phase 1 had focused on the disposal of assets from the development and investment portfolio and phase two had not yet commenced so no disposals had progressed from assets within the operational portfolio.  Specifically in relation to Unit 26 Wexham Business Village, the property was not classified as a community asset.  The Executive Director of Housing & Property explained that it had been bought as an investment asset and it was a commercial unit.  The freehold was due to be auctioned in the next week and the sale would deliver best value.  The tenant could bid in the auction, or if another party purchased it their lease terms would not be effected and it would therefore not result in the displacement of the club.  The Bath Road property was not being disposed of but the lease was being regularised.

At the conclusion of the discussion, the Cabinet welcomed the positive progress report on the delivery of Phase I of the strategy and approved the new strategy as at appendix 2 to the report.

Resolved –

(a)  That the positive progress that had been made in delivering the first phase of the Asset Disposal Programme as set out in Appendix 1 of the report be noted;

(b)  That the new Asset Disposal Strategy as set out in Appendix 2 of the report be approved.