Agenda item

To provide an update on development and delivery of the Council’s Asset Disposals programme and invite comment/questions from the Scrutiny panel.

Contact: Alistair Kimpton Strategic Partnership Lead, Stores and Logistics and David Martin Head of Capital Landlord & Delivery Tel: 01484 221000

Councillor Graham Turner introduced the agenda item, advising that it was a straightforward asset report and that officers would provide further detail.

Joanne Bartholomew, Service Director Development, informed the Panel that the asset disposal update report is part of a regular series of reports to the panel and would provide an update on the progress on assets against the target for disposal.

In reference to the report, the Panel was advised that progress remains on track to achieve the £6 million target, and that current projections indicate this figure is likely to be exceeded within the financial year.  The primary focus of the report is to ensure the Council has a clear understanding of those assets that are essential to service delivery. Wherever appropriate, the Council will seek to dispose of assets that are not of strategic importance or do not serve a core operational function. This approach will facilitate potential development opportunities on those sites and contribute to reducing the Council’s revenue costs associated with maintaining those buildings or parcels of land

The Panel was informed that over successive reporting cycles, the approach has been to provide a focused, transparent account of the costs associated with asset disposals and the capital receipts generated from previous disposals.  The report includes several tables which outline progress in relation to asset disposals and also details a number of assets previously declared surplus that have been awaiting disposal for some time.

The Panel was advised that there is a comprehensive programme of disposals underway, with the auction method being used in most cases. This approach ensures full transparency, allowing any interested party to bid providing openness in the prices achieved. On occasions, disposals are made directly to interested parties, particularly where they adjoin the asset in question, and that some transactions have proceeded via a ‘best and final offer’ process, including one due to conclude this week.

In response to the information presented, the Panel asked a number of questions and made comments including some of the following:

-       How can the Panel be assured that the Council exhausts all other means of raising capital before it resorts to disposal of its assets often against the wishes of the community and council taxpayers?

-       How is the target set?

-       The report identifies that some assets are allocated as miscellaneous or pipeline.
What are the main reasons that they have been put into that category and what are the main issues that have been identified as to why they are struggling to get disposed of?

-       Occasionally a sites goes in for auction and then it is withdrawn. Does withdrawing it from auction have a cost implication to the Council?

-       Are there any opportunities for the Council to incorporate some of these sites into its own housing stock and where the Council owns the land and could support developers access funds, are potential opportunities being missed?

RESOLVED:

That the Cabinet Member and officers be thanked for presenting the Asset Disposals Update Report 2025.