Asset disposal shouldn’t be a fire sale
This article originally appeared on British Politics and Policy, part of LSE Blogs at the London School of Economics.
In late January reports emerged that Westminster is quietly pushing forward plans to loosen budget rules for councils, enabling them to sell off their assets in order to fund front-line services like adult social care, children’s safeguarding and waste collection. While, on the face of it, this looks to be a welcome gift for the many councils currently facing bankruptcy, this change in the rules is potentially fraught with risk.
The danger is that – desperate to raise cash – councils will enter a fire sale of their assets to the highest bidders, fuelling the extraction of wealth from land and assets with the potential to create public value. What needs to happen instead is for councils to be given the opportunity to pass on their assets in a manner that supports the local community and economy, while also raising necessary funds.
