Approval is being sought by Peterborough City Council’s cabinet for a comprehensive review of a range of assets to support the council’s financial sustainability and reduce debt.
It is important to note that this is a list of assets for consideration and at this stage it is not proposed that all the assets on the list will be disposed of. If approved by Cabinet, it will give the council’s Executive Director of Corporate Services the authority to make difficult decisions to support the council’s budget strategy.
The list identifies assets which the council could release for sale over the period of 2024-2029 and is split into two sections:
1. Completed disposals under offer and negotiation
2. Assets under consideration for disposal
The council currently owns more than 1,800 property assets including land and buildings. Capital receipts generated from this disposal programme will not directly reduce pressures on the council’s revenue budget (the money the council uses to provide services). However, the proceeds may be used to repay debt, which means the council will spend less of its revenue budget paying interest on that debt. Liken it to a mortgage on a home, the less you owe the less you will owe in interest each month.
The disposal programme flows from the Asset Management Plan 2024-29 and Capital Strategy, approved by Council in February 2024 as part of the budget setting framework.
Around 200 council owned properties have been identified for consideration, some are already under offer and negotiation. The existing disposal programme has identified capital receipts in the region of £33m in 2024/25. If used to repay debt, this will provide annual revenue savings in the region of £2.4m.
Property is a major resource for the council. It can be expensive to maintain, needs careful management and requires constant review in an ever-changing and economically challenging environment to provide best value to the council.
All assets on the current disposal list have been reviewed appropriately by considering the needs of the council and its statutory services. They are subject to independent valuations and/or offered to the open market to ensure that best value is achieved.
The council is also working with the tenants of properties where sales have been agreed or are likely to be, so that they can be supported to find alternative locations where possible.
Councillor Mohammed Jamil, deputy leader and cabinet member for finance and corporate governance at Peterborough City Council, said: “The important thing to stress is that not all assets on the list will necessarily be sold. In fact, many on this list are for consideration only. However, repayment of debt, funded from capital receipts, will support the council’s financial position and help to balance the budget.
“As a councillor of many years, I have always warned about the sale of assets, as you can only sell them once. However, in this instance I believe that the disposal list provides the opportunity to reduce debt and ongoing maintenance costs relating to assets that don’t directly support the council’s overall priorities.
“Our current financial position means we are unable to keep up with running costs of our considerable property portfolio, and asset values may deteriorate without proper investment. With energy efficiency requirements changing, some of these assets will no longer be suitable to let.
“These potential disposals are a small percentage of the council’s 1,800 property assets and will help the council’s financial position, while still providing the statutory and day to day services that residents need.”
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