Issue - meetings

Joint Report of the Executive Director and the Head of Corporate Resources

The Cabinet considered the Joint Report of the Executive Director and the Head of Corporate Resources in relation to a phased approach of a review of the Council’s asset base. The report detailed those assets that had been identified as being available for disposal and the proposed approach to phase 1 of the programme. The report indicated that the disposal programme would support the Council’s objectives, such as delivery of the Local Plan and maximise the capital sums available in order to contribute to both the Framework for Change, “Cost of Change Budget” and the first phase of projects within the Growth and Investment programme.

Decision Made:       That

(1)       the disposal of the assets detailed within the report be approved, with a view to generating capital receipts to support the Growth and Investment Programme and the Council’s Framework for Change Programme, with the exception 25 Crosby Road North, Crosby; 255/257 Knowsley Road, Bootle; and 18 Great Georges Road, Waterloo, which will not be progressed at this juncture;

(2)       delegated authority be provided to the relevant Officers to negotiate terms and conditions for each disposal in line with normal delegations set out in the Council’s Asset Disposal Policy; and

(3)       the fact that a progress report on the matter will be submitted to the Cabinet during April 2020, be noted.

Reasons for the Decision:

(i)         Disposals will provide capital funding in support of the Growth and Investment Programme, which forms an ambitious strand of the Council’s Framework for Change programme. It will also support the Cost of Change budget that was agreed by Council in March 2017 to support the delivery of the three-year budget package.

(ii)        Assets have been identified for disposal where they adhere to two criteria: that each capital receipt forecasted represents financial “best consideration” and where the loss of other opportunities is quantifiable and does not undermine wider service delivery and economic development/ regeneration priorities.

Alternative Options Considered and Rejected:

(i)         In the event that the Council does not progress the disposals as set out in this report, the Growth and Investment Programme would either need to be reduced in scale and ambition, or the timing of project delivery is delayed. Alternatively, the Council would need to borrow capital funding from the Public Works Loans Board, and this will increase the financial pressure on the revenue budget. Some of the projects in the Growth and Investment Programme will deliver new financial revenue streams to the Council which might not otherwise be realised.

(iii)       Similarly, Council approved a Cost of Change Budget as part of the three-year budget approved in March 2017. This included details of capital expenditure that would be required to support the delivery of the Framework for Change programme with approval that this would be funded by asset disposals. If these recommendations are not approved, the Council will need to borrow funding from the Public Works Loan Board, and this will amount to a revenue cost of approximately £0.700m over five years.