Slough Borough Council has been told by government commissioners that it will need to sell £600m worth of property assets to ensure its future financial sustainability.
A report to Slough’s Cabinet confirmed that the commissioners had insisted the council must sell half of its total assets of £1.2bn to reduce its debt of £760m.
The report stated: “The need to sell £600m of assets because the council does not have the revenue budget to fund any MRP [Minimum Revenue Provision] required by the capitalisation directions … requires the disposal of most of the council’s property holdings without exception.”
It is likely that the sale will involve the authority’s libraries, children’s centres, housing stock transfer and its Observatory House headquarters.
The “Commissioner Review” section of the report stated: “This is a very stark picture, and it is a direct consequence of the decisions taken and errors made in the past. They cannot be undone. All the council can do now is put things right.”
The report follows the section 114 notice issued by the finance director in July 2021, a section 25 report issued in March 2022, and the sacking of the chief executive for gross misconduct also in March 2022.
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