Council accused of “selling the King’s jewels" as £5m asset plan is revealed
Dumfries and Galloway Council defends strategy to sell surplus land and buildings
Dumfries and Galloway Council has been accused of “selling the King’s jewels” – after it was revealed the local authority is flogging land in pursuit of profits.
The council is actively identifying pieces of disused land or old buildings that are declared surplus to requirements.
The practice is all above board and signed off by councillors, but it was this week revealed that the council has a rough financial target of £500,000 per year – or £5m over 10 years.
At Tuesday’s enabling and customer services committee, Nith Councillor David Slater questioned the continual sale of council assets and described it as “selling the King’s jewels”.
He added: “You can’t keep on selling your assets off. You’ll end up with no assets.”
Paul Garrett, the council’s chief finance officer, replied: “The council only sells those assets that it doesn’t have a requirement for as part of its service delivery.
“Obviously there is a recognition that the council has a greater property estate than it requires to meet its needs.
“At present, one of the savings that’s currently out for consultation relates to potential further reductions in the council’s estates, which can produce assets that are available for sale.
“But we do recognise that there is an end to this. You tend to see reductions over a longer period.
“The key thing is that we will continue to focus only on those surplus assets – ones that are not required to support council delivery – in terms of generating capital receipts.”
This matter was discussed by councillors after a report was tabled on capital receipts at the enabling and customer services committee.
Abbey Councillor Kim Lowe asked about the process of land disposal and whether or not the council is maximising income from selling its assets.
Karen Donaldson, the council’s treasury, capital and pension fund investment manager, said: “In relation to the capital receipts target, although we allow for a half a million pound per year, we try and take a longer term view that we can achieve £5 million over a 10-year period.
“There have been years when we’ve over-delivered on that £500,000 target, and what happens in those instances is we put it aside in the capital fund to allow for years where there may be a shortfall in receipts.”
She explained that the council currently has a surplus of £55,000 in the capital fund, and added: “But there is still the expectation that there are assets out there that are to be marketed that – over the 10-year period – we should be able to achieve the £5 million.”