Nottingham City Council is pushing ahead with plans to dispose of several buildings as part of its broader strategy to bridge a substantial budget gap and streamline operations.
This decision comes against the backdrop of mounting financial pressures, necessitating the sale of surplus properties to generate capital receipts and alleviate operational burdens.
Among the assets slated for sale are 4 Claremont Road and the former Thorneywood Pupil Referral Unit (PRU), both of which have been declared surplus to the council’s requirements.
With a looming budget shortfall of over £50 million for the financial year 2024/25, the council has been forced to adopt aggressive measures.
This deficit stems rising demand for children’s and adult social care services, increased homelessness presentations, and the impact of inflation.
In response, the council has outlined savings totalling over £36 million, to be achieved between 2024/25 and 2027/28. To further mitigate financial strain, the council has secured Exceptional Financial Support (EFS) from the Government amounting to £66.143 million, spread over two years – £25 million in 2023/24 and £41.143 million in 2024/25. Importantly, this support is not a grant but rather permission to use capital resources, including proceeds from asset sales, to fund ongoing services.
One of the more prominent properties up for sale is 4 Claremont Road, a site identified as surplus to the council’s trading account needs.
The decision to dispose of this asset was taken after it became apparent that there were no operational, community, or regeneration requirements for the building. Retaining the property posed a significant financial risk due to ongoing capital expenditure for repairs, maintenance, and vacancy management. The asset had been prone to vacancy and issues such as anti-social behaviour, which further justified the council’s decision to sell. The sale of 4 Claremont Road is expected to provide a much-needed capital receipt, contributing to the council’s corporate capital resources. This decision is in line with the council’s adopted disposals policy, which mandates that all disposals be conducted in a way that ensures the best consideration for the property. The council will likely explore auction options to ensure a swift and secure sale.
Similarly, the former Thorneywood PRU, located on Fairmead Close, has also been earmarked for sale. The property had already been declared surplus under a previous decision (Reference Number 4712), and in March 2023, the Secretary of State for Education granted consent for its disposal under Schedule 1 of the Academies Act 2010. The capital receipts generated from this sale are ringfenced for educational improvement projects within the city, ensuring that the proceeds are reinvested in much-needed educational infrastructure. Like 4 Claremont Road, retaining the Thorneywood PRU would have imposed significant capital expenditure for repairs and maintenance, further underlining the financial necessity of its sale.
In both cases, the council’s approach has been carefully considered. The “do nothing” option was rejected, as it would have resulted in ongoing financial risks without generating any capital returns. The properties require capital investment to maintain and are not seen as having any future operational value to the council. Therefore, the strategy to sell via auction with a well-targeted marketing approach is seen as the most effective way to maximise value while meeting the council’s financial obligations.
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