A report recommending the disposal of several Somerset Council assets to help generate funds in response to the financial emergency will be considered by members next week.
The Resources and Corporate Scrutiny Committee will be asked for comments on the proposals to help bridge an £80m funding gap in the current financial year and a £100m budget gap for 2025/2026, at their meeting on 24 July.
The report and recommendations will then be presented to the Executive for a final decision on 7 August.
The buildings and small parcels of land have been identified for sale as part of an ongoing review of assets in line with the Council’s Asset Management Strategy, and Policy for the Disposal of Assets, approved by the Executive in November 2023.
The report outlines proposals to dispose of a number of non-operational buildings and small parcels of land which hold development potential, and includes several landmark buildings including the Market House in Taunton and The Cornhill in Bridgwater.
The proposed sites have a combined estimated capital receipt range of £17m to £21m. However, information relating to individual asset disposals remains commercially confidential.
Cllr Ros Wyke, Lead Member for Economic Development, Planning and Assets, said:
Somerset Council is committed to evaluation of and, where appropriate, rationalisation of its surplus property and land portfolio to reduce costs and ensure that the council’s estate is financially sustainable.
This drastic action is in response to the well documented financial emergency facing Somerset Council and the capitalisation direction approved by the former Government which encouraged us to sell surplus property and assets, and use the capital receipts to fund essential services, like adults and children’s social care.”
The Leader of Somerset Council, Cllr Bill Revans, is writing to the new Prime Minister, Keir Starmer, highlighting the challenges facing local councils and calling for urgent action to prioritise local government. He is also requesting a meeting to discuss the crisis with the new Secretary of State for Housing, Communities and Local Government, Angela Rayner.
Cllr Revans said:
We have worked incredibly hard to reduce our spending and have never shied away from taking difficult decisions to find savings across all service areas. We’ve worked in partnership with city, town and parish councils to protect services and assets as far as possible but as this report shows we continue to face heartbreaking decisions that will have a visible and lasting impact on our communities.”
The report to the Resources and Corporate Scrutiny Committee can be found here: Report on Non-Operational Assets – CR Scrutiny Committee 24 July 2024.pdf (somerset.gov.uk)
