Wirral Council is set to embark on a five-year strategic property asset disposal programme as it seeks to raise £12.371m and comply with a government capitalisation directive.
The Department for Levelling Up, Housing and Communities (DLUHC) granted capitalisation directions of 2020/21 and 2021/22 following a council application to permit the use of capital streams to fund revenue expenditure it incurred “in respect of the pressures or income losses emanating from financial pressures”.
An inability to meet the requirements of the capitalisation directions could lead to government intervention, while any financial failings could result in the issuance of a section 114 notice.
Following a review, a list of assets which are appropriate for disposal has been drawn up to “help ensure the council only owns properties which it needs to”.
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These assets are either no longer required to deliver a service; vacant following the council’s office rationalisation programme; vacant with development potential; or income generating assets which are either poorly performing or will require significant expenditure in the future.
Properties identified for sale include a former outdoor education centre with accommodation operated by Edsential, the educational community interested company part owned by the council.
Others include the site of a former library, an industrial estate, a former town hall, agricultural land, former council offices, a former specialist sports college, and former municipal offices.
The disposal of these assets will generate capital receipts. Estimated receipts have been listed in a report on the strategic asset disposals programme, but the final disposal price will be based on a marketing exercise or specific advice from the appointed property consultants, it said.
The report also said it was likely that, through further rationalisation, asset reviews, service reviews and regeneration initiatives, other assets would become available for disposal in the future.
The report will be considered by the council’s Policy and Resources Committee tomorrow (12 July).
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