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Our investigation also discovered a link between the sell-off of public assets and a sharp rise in redundancies at some councils, following a new government policy which gave local authorities more freedom over what they could do with their money.
Previously, money made from selling public assets could only be used to fund the cost of buying new ones. In April 2016, the then Chancellor George Osborne relaxed the rules to allow local authorities to spend the proceeds on cost-cutting measures, such as sharing back-office functions with other authorities, investing in new technology or other reforms which have upfront costs but reduce spending in the long-term.
Freedom of Information requests submitted by the Bureau found 64 councils in England have spent a total of £381 million made from property sales using the new freedom since the policy came into effect. Almost a third of that - £115 million - was spent on making people redundant
Article about the journalism and data analysis around it;
https://www.thebureauinvestigates.com/stories/2019-03-04/sold-from-under-you
Mapping by postcode of public assets that have been sold:
https://council-sell-off.thebureauinvestigates.com/
If a company were selling assets at this rate to fund 'business as usual' I'd be questioning its sustainability. I can't help feeling the same about local government, tbh.
If a company were selling assets at this rate to fund ‘business as usual’ I’d be questioning its sustainability. I can’t help feeling the same about local government, tbh.
Feeling? Its a nailed on certainty that we are not putting enough money in at the moment. Council tax is a political toy, we expect more than we are willing to pay and we don't currently have a solution.
You do need to factor in what assets they currently hold without going down the path “it’s a fire sale”
Which it obviously is.
But they are asset rich, no doubt. And selling off under utilised assets to fund other strategic plans is commendable. I bothers me little that they’re using funds to fund redundancy, the world is littered with the remnants of big business sell offs and mass redundancies.
Lets also not forget the contracts these workers are on either. When protected earnings and last salary pensions were written into LA contracts that means you have to pay for this legacy employees for whom had nothing to do with the contract nor it’s negotiation.
Got to find it from somewhere eh Shirley ?
Poll Tax/Council Tax is a poor method of income generation. A levy based on poor predict service outcomes and mass lag in the system.
Its time for the LA funding model to be scrapped and a Tax based on earnings replacing it to be introduced.
IMO
And let’s not forget the Southampton Council holding priceless Art, and handing it out for resident to hang on thier walls...
And let’s not forget the Southampton Council holding priceless Art, and handing it out for resident to hang on thier walls…
Go on...