William Eichler 11 March 2016

Councils can raise cash by selling surplus assets

Councils can raise cash by selling surplus assets image

Under new rules councils will be able to spend any revenues they generate from selling surplus assets on public services, communities minister Marcus Jones announced today.

Chancellor George Osborne said in last year’s Autumn Statement there would be changes to the rules governing the use of ‘capital receipts’.

As a result of these changes local authorities will now be able to sell surplus assets — such as property or shares and bonds — and use the money to fund, for example, children’s services or trading standards.

This will begin on April 1 and last for a three-year period.

The move is a part of the government’s strategy to phase out local government grants by 2020 and to replace them with revenue raised locally.

Marcus Jones said: ‘The devolution revolution and historic 4-year local government finance settlement means that councils can now plan budgets with security. These new rules will further incentivise local authorities to plan out the best financial future.

‘They will be able to sell off their surplus assets in order to make additional resources available and make efficiencies to improve services that really matter to local people.’

Councils will be required to develop a dedicated strategy document to go alongside their annual budget which will list each project that plans to use the new revenue.

For your free daily news bulletin
Highways jobs

Systems Development Officer

North Yorkshire County Council
£27,741 - £30,451
Are you passionate about technology and systems development? Northallerton, North Yorkshire
Recuriter: North Yorkshire County Council

Highway Network Officer

Cumbria County Council
£31,346 - £32,234
Are you looking to progress your career within the Highways and Transport sector? Workington, Cumbria
Recuriter: Cumbria County Council

Assistant Business Partner

Essex County Council
The OpportunityThis role is part of the People Business Partnering team and supports the delivery of the workforce strategy, functional people strateg England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Democracy Officer (Scrutiny)

Telford & Wrekin Council
£30,451 to £32,234 per annum
Reporting to the Democratic Services and Scrutiny Team Leader, the post-holder will... Telford, Shropshire
Recuriter: Telford & Wrekin Council

Independent Living Housing Advisor

Essex County Council
£36645 - £37645 per annum
Independent Living Housing Advisor Fixed Term, Full Time Up to £37,645 per annum Location
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue