Use 170bn land assets as income stream, Lewis tells councils
Author: Michael Burton, The MJ |
Local authorities should use their 170bn of land and property assets as an income stream to offset spending cuts and fund transformation rather than make a quick sale, housing and planning minister Brandon Lewis urged today.
Speaking at the launch of a Localis report ‘Public Land, Public Good: getting maximum value from public land and property’ the minister said that ‘public land and assets have for too long been gathering expensive dust.’
He added: ‘Public assets are a source of revenue, not just a way of selling land or building houses. More effective use of it can release capital funds, bring revenue benefits and put a sharper focus on service delivery.’
Asked whether councils should use their reserves to buy property and generate new income streams rather than receive derisory interest rates Mr Lewis replied: ‘You have a general power of competence. Use it.’
The Localis report, sponsored by the Catherdral Group, urges councils to use their assets to provide income rather than one-off capital receipts, pointing out that 2.3bn of local authority assets could be undersold over the next five years.
Julian Bell, leader of Ealing LBC, told the launch event: ‘Spending cuts are making us more innovative about public land.’
Richard Blakeway, deputy London mayor for housing, land and property, said: ‘We need a culture shift about the value of public land.’
Richard Upton, chief executive of Cathedral Group, said that a land asset worth 10m as a sale could actually generate ten times that amount if retained and developed.