The Asset Rationalisation Programme is a strategic effort to reorganise and, where appropriate, dispose of council-owned properties to improve operational efficiency, meet community needs, and generate essential capital receipts.
Nottingham City Council owns a diverse range of property assets, including leisure centres, administrative buildings, and commercial properties. These assets are not just resources but serve as significant public investments, requiring clear justification for continued ownership.
Recent plans include selling off the Embankment pub building and a Victorian building in Ayr Street plus many office blocks, car parks , disused buildings and parcels of land.
According to the latest update ahead of a meeting on 18 November, the Council has generated £35.5 million in capital receipts for the financial year 2023/24, with £11.2 million of this being earmarked to repay existing borrowing.
Since the beginning of the programme, the total capital raised from asset disposals between 2021 and 2024 stands at £77.83 million. This substantial figure reflects the Council’s intensified efforts over the past few years to divest surplus property as part of its broader financial recovery plan.
The Asset Rationalisation Programme is crucial to supporting the Council’s cash flow and reducing borrowing requirements. There is a presumption in favour of disposing of surplus properties unless a strong business case can be made for alternative use. Although generating capital receipts is a core goal of the programme, it is equally about ensuring efficiencies in service delivery and maintaining the best value for the city’s residents.
The Housing and City Development Scrutiny Committee, which reviewed the programme on multiple occasions, including meetings on 18 December 2023 and 22 January 2024, has called for the development of a more formal framework to weigh the community benefit and wider service impacts when considering potential property disposals.
The Committee emphasised the need for clear management plans and risk assessments for all vacant property assets to minimise holding costs during the disposal process.
The Committee also highlighted the importance of developing a comprehensive strategic asset plan to identify development opportunities, engage proactively with potential developers, and ultimately maximise returns from the sales.
The Council’s Strategic Assets and Property team has accelerated its review and disposal of assets over the last two years.
© westbridgfordwire.com
The capital receipt target for the 2024/25 financial year was originally set at £38 million but has since been revised down to £32.98 million, partly due to adjustments to the asset pipeline and market conditions.
As of the latest forecast, the Council has managed to raise £13 million in receipts for the year to date, including carry-over from the previous financial year. Around £20 million worth of assets are expected to go through auctions during the remainder of 2024/25, bringing the Council closer to its revised target.
Looking ahead, the Council’s financial forecast for 2024 to 2028 shows a risk-adjusted pipeline of £141.4 million. This ambitious target underlines the Council’s determination to use asset sales as a key means of addressing its financial situation. However, the sale of public assets remains a complex process due to the inherent illiquidity of property and various external factors, such as economic uncertainties, which can directly impact the price received for each asset.
© westbridgfordwire.com
To enhance the programme’s effectiveness, the Strategic Assets and Property team is also undertaking a review of the Council’s Disposals Policy to ensure it aligns with other key Council initiatives, including the Council Improvement Plan. The revised policy is expected to be more robust in terms of referencing other critical policies to ensure that asset disposals are contributing directly to the Council’s broader improvement agenda.
One of the key challenges flagged in the latest report is the ongoing issue of resourcing within the Council. Despite the accelerated push to review and sell assets, the Strategic Assets and Property, Legal, and Finance teams have faced significant challenges in resourcing the delivery of the programme. With increasing demands on local government resources, these departments have been stretched thin as they work towards the ambitious financial goals set for the coming years.
Nottingham City Council, like many others across the country, continues to face a difficult financial landscape, compounded by inflation, rising service costs, and increased demands on public services. The Council’s decision to ramp up the disposal of surplus properties forms part of a larger strategy aimed at ensuring the city’s finances remain sustainable. As part of the Asset Rationalisation Programme, community and ward councillor engagement is being developed to ensure that the local communities most affected by these disposals are properly consulted.
• Wollaton: Cannabis grower faces courts after grow found in house
• West Bridgford: Rushcliffe community to mark Armistice Day 11 November
