Councils are Holding Fire-Sales of Public Assets from Libraries to Farms

Started by Borg Refinery, August 22, 2024, 05:01:42 PM

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Borg Refinery

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August 22, 2024, 05:01:42 PM
QuoteAcross the country, councils facing financial squeezes are selling off public assets to make a quick buck.
Local authorities in England have suffered cuts of around 50% to their budgets from central Government since 2010, leading to a wave of recent privatisations.
The situation is particularly dire in councils that have been forced to issue so-called Section 114 notices, where a council effectively declares itself bankrupt, and is put under special measures. Unelected offices then tend to take the reins, in many cases 'disposing' of land, buildings and other amenities to raise funds.
Fourteen such notices have been issued since 1998. Twelve of those have been since 2018, after many councils had drained their reserves.
In many cases, the resulting sell-offs are pushed through with no consultation and, often little publicity. But it's not just officially '[color=var(--color-link-blue)]bankrupt[/color]' councils flogging assets. Many more are trying to stay afloat and deal with the soaring cost of borrowing following post-pandemic interest rate hikes.
On Tuesday, Byline Times reported how [color=var(--color-link-blue)]Cornwall Newquay Airport[/color] is being handed over to a private consortium, to offload a £4.5 million annual subsidy from the council's balance sheet. Some 650 acres of public land surrounding the airport will reportedly be gifted to sweeten the deal.
Following responses from readers, we've compiled a list of some recent council sell-offs, many of them controversial, to give a sense of what is being flogged off as local authorities grapple with sky-high debt repayments on their borrowing.
Cat Hobbs, from public ownership campaign We Own It, told Byline Times: "Privatisation is a one time thing – once it's gone it's gone. Selling off valuable assets [is] a huge mistake."
Readers are encouraged to send in examples of upcoming sell-offs near them to josiah@bylinetimes.com

Recent Council Sell-Offs by UK Region
London and South East
Other controversies in recent years include Tonbridge and Malling Borough Council selling off a youth club reportedly worth £1.5 million for £750,000 in 2017, and another property for £1.515 million which resold for £3.45 million months later.
A reader tells Byline Times of rumours Reigate and Banstead Borough Council wants to [color=var(--color-link-blue)]sell[/color] a local school for it to be converted into a hotel.
Concern is growing over a Conservative-led council's opaque plans to privatise Cornwall Newquay Airport. It's part of a bigger picture across England
Josiah Mortimer

South West England
Midlands
The big sell-off story in the Midlands is Birmingham City Council. It is offloading huge swathes of public assets after issuing a Section 114 notice in September last year following legal claims for equal pay costing around £700 million.
Some of the council's privatisations, as part of plans to raise £750 million over two years to help (temporarily) balance the books, include proposing to close 25 of the city's 36 libraries and sell the buildings, and selling off 755 properties from the Perry Barr housing estate.
The estate was originally intended as an athletes' village for the Commonwealth Games in 2022, but it wasn't ready in time. Hundreds of flats will sold to a private bidder at a projected loss of around £320 million.
Other Midlands sell-offs include at Stoke-on-Trent City Council. The (former) Stoke Library is up for sale. Dudley Council is reporetedly planning to close Sycamore Adventure Centre.
Nottingham City Council has sold at least £64 million worth of property assets since 2020 to pay off debts.
The council is now considering handing over iconic sites like Nottingham Castle, Wollaton Hall and Newstead Abbey to a charity, though private sales are considered an option, Nottingham Post reported in July. The decision follows the council effectively declaring bankruptcy in November 2023.
In Ashfield, the independent-run council is [color=var(--color-link-blue)]demolishing[/color] "under-used" community centres to build housing.
North West England

  • Wirral Council: Considering selling off two town halls in Wallasey and Birkenhead, as [color=var(--color-link-blue)]reported[/color] by the BBC in July.
  • Wigan Council: Closure of a community centre on a deprived estate, to be replaced with houses with "no community provision" in the plan, a reader tells us. We are looking to verify this report.
  • Fylde Borough Council: Closed swimming baths in Kirkham, now reportedly seeking a private company to take it over.
Oldham Council is among many in the region in [color=var(--color-link-blue)]financial dire straits[/color], and likely to be considering its options.
EXCLUSIVE
Serious problems have arisen after the Government abolished the Audit Commission and handed the job to private accountancy firms instead
David Hencke

North East England
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