19/03/2025
As Local Authorities continue to face increased financial difficulties, many are required to consider alternative sources of funding and ways to reduce overheads. Reports of authorities on the brink of bankruptcy are still commonplace, despite warnings and initial measures being taken to avoid this.
We have seen a range of strategies from various local authorities to tackle this and avoid issuing an s114 report, including re-commissioning services, implementing spending control measures and recovering debts. However we have recently seen an increased interest in fire sales - the mass sell-off of housing stock, land and commercial assets as a way to raise funds. This has the opportunity to generate much-needed funds in the tens of millions of pounds, which can be a lifeline for councils on the verge of bankruptcy.
Disposing of assets can not only raise funds but also remove the draining costs of dealing with problematic stock that has disrepair issues or high maintenance fees. However whilst this is an appealing option for some authorities, this strategy needs to be approached with caution in order to achieve the desired benefits.
We understand that difficult choices need to be made to ensure councils can continue to provide essential services and ensure long term security. Our experience of working with both private and public sector organisations on portfolio sales enables us to approach such programmes in a measured way, as streamlined as possible for all parties.
For further information, please contact Lyndon Campbell.
