Asset Disposal Strategy Scrutiny Commission ... - Lambeth Council

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2.3 Recommendation B: Ultimate disposal decision made at corporate centre 2.3.1 The decision making framework will be amended to ensure that decisions on disposals are made on the basis of advice provided by the corporate officer-led SAMG and member-led ARG. 2.4 Recommendation C: the primary questions for the retention of assets should be is a property owned by the council required? 2.4.1 The decision making framework will be amended to ensure that decisions on retention or disposal flow from the questions: Is a property asset required to deliver the service that currently uses the operational building? And does the asset need to be owned by the council? 2.5 Recommendation D: quantitative analysis should be weighted more heavily than qualitative analysis 2.5.1 The decision making framework will be amended to ensure that the weighting of qualitative and quantitative criteria in the Operational Property Portfolio be reversed so that the qualitative data is weighted 40% and the quantitative 60%. 2.6 Recommendation E: asset disposal decisions should be transparent 2.6.1 The enhancements to the existing process noted in the responses to recommendations B, C and D will be captured in a process that can be clearly articulated to members and the public. 2.7 Recommendation F: disposals are timed to ensure maximum return 2.7.1 The revised disposal process will demonstrate that consideration has been given to the impact the timing of disposals has on returns. However, the ultimate decision will need to balance the urgency of the funding requirement (set out in the Capital Investment Pipeline) with maximising returns. 2.8 Recommendation G: where disposals have failed to achieve reasonable value after marketing the council should apply for a change of planning use 2.8.1 The Planning Division strongly advocates and supports the pro-active approach set out in the recommendation as the most effective way in establishing the best value and benefit to the Council in the disposal of sites. The approach to deciding planning applications is however, determined by law as set out in planning legislation and case law. 2.8.2 The recommendation that the Council submit a planning application to change the use of a site to achieve a higher value would only be appropriate in certain circumstances. All planning applications need to be determined in line with planning legislation and case law and therefore this approach should only be progressed where a change of use is considered be in line with current planning policy or where other material considerations are relevant.. 2.8.3 The Government Planning Policy Statement 1 (The Planning System: General Principles) sets out that, “Local planning authorities must determine planning applications in accordance with the statutory Development Plan, unless material
considerations indicate otherwise……Where there are other material considerations, the Development Plan should be the starting point, and other material considerations should be taken into account in reaching a decision.” 2.9 Recommendation H: prioritise the sale of high value offices 2.9.1 The Council's use of office space is currently being reviewed with a view to releasing significant funds 2.10 Recommendation I: Corporate Landlord Model implementation timetable 2.10.1 The "Corporate Landlord Model" is taken to mean the centralisation of property management and decision-making. Strategic decisions about the council’s asset portfolio are made corporately by the Strategic Asset Management Group, and planned maintenance is centrally coordinated. This is illustrated in the Capital Investment Programme by the establishment of a Planned Maintenance budget managed by VAMS (in the HRE department). 2.11 Recommendation J: Clear and transparent decision-making in the budget setting process 2.11.1 Council will be asked to approve the projects in both the Capital Investment Programme and the Capital Investment Pipeline at its budget setting meeting in February. The individual projects in both the Programme and the Pipeline will be detailed in the appendices to the budget report, providing members and the public with an unprecedented level of clarity and transparency. The Capital Investment Programme will be updated through the July Finance Review and a new mid-cycle Budget Update report in November, again increasing clarity, transparency and accountability. 2.12 Recommendation K: HRA income from commercial portfolio 2.12.1 The government is fundamentally reforming the housing finance system. The reforms will enable councils to retain the income from local rents, abolish the subsidy system and lead to the equalisation of housing debt across local authorities that provide housing services. It will therefore have a significant effect on Lambeth’s Housing Revenue Account. The HRE Resources division is modelling the impact of these proposals, which will need to be carefully considered to ensure that the HRA will remain stable and be able to support the delivery of housing services. Removing the income from the commercial portfolio before the stability of the HRA under the new system has been proven would be premature. Nevertheless, the principle behind this recommendation is accepted and may be implemented in the medium to long term. 2.13 Recommendation L: timing of disposals of commercial properties reflects market conditions 2.14 The revised disposal process will demonstrate that consideration has been given to the impact the timing of disposals has on returns. However, the ultimate decision will need to balance the urgency of the funding requirement (set out in the Capital Investment Pipeline) with maximising returns.
Page 1 and 2: Cabinet 7 February 2011 Response to
Page 3: Response to the Asset Disposal Stra
Page 7 and 8: 3. Comments from Executive Director

Asset Disposal Strategy Scrutiny Commission ... - Lambeth Council

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