LGA disappointment over assets

Author: Local Government Chronicle - Oct 12, 2009

The LGA has said it is disappointed not to have been consulted over a sale of publically-owned assets to be announced by the Prime Minister

Margaret Eaton, chair of the Local Government Association, said the sell-off “could have serious ramifications for the state of (councils’) tightly managed budgets”.

Gordon Brown wants to reduce part of the budget deficit by raising £16bn from the sale of a “portfolio of non-financial assets” held by Whitehall and local authorities over two years.

In a speech on the economy, the PM will outline initial sales including the Tote, Dartford crossing and the student loan book despite the depressed state of the market.

Mr Brown also wants a proportion of local government real estate sold off - estimated to be worth a total of £220bn - which he hopes will bring in £13bn over the next two years.

Ms Eaton said: “It is disappointing that councils were not consulted about an announcement that could have serious ramifications for the state of their tightly managed budgets.

“As a matter of routine councils sell off unwanted assets but always make sure that they get the best value for money for the local taxpayer.

“Local government will dispose of assets if they are not required but, given the current financial climate, this is not a good time to sell. It needs to be local councils working with local people deciding when, or if, there is a right time to sell assets.

“The proposals need to be fleshed out further. What sort of assets are councils being expected to sell? Does it include school playing fields, cemeteries or libraries? If a council does not believe that a specific asset should be sold how do we avoid protracted legal wrangling that would cost the taxpayer money?”

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