A REPORT to Newport City Council’s cabinet has suggested the council could consider selling some of its assets and spend the money on frontline services instead.

The Review of the Commercial Estate report, which is to be considered by the Cabinet on Monday, April 13, has proposed a review into how to manage council property more efficiently.

Norse Newport, which manages the council’s 400 buildings and 1,000 parcels of land, wrote the report and suggested undertaking a review to improve efficiency.

The council’s commercial estate currently brings in an annual income of more than £1 million. It includes both “operational property”, including schools, offices and housing, and “non-operational property” including investment properties like shops, theatres and industrial units.

Until the end of 2016, 50 of its leases are due to come to an end meaning the council has a chance to review the rent. The 50 leases currently brings in an income of £305,000 per year, although the estimated market rent value is likely to be even higher with a value of £350,000.

The council has already recently sold many of its leases and in 2013/14 Newport City Council sold 21 leases bringing in capital receipts of £285,620.

In the report, the Chief Financial Officer said asset management is important to stop money being wasted and services failing to meet user needs.

The CFO said: “Given the financial challenge that the council currently faces, and will continue to face for the foreseeable future it is important that the council assets are used in the most efficient way.

“When undertaking this review it is crucial that not only the cash benefits of retaining these properties are considered but also the associated costs to ascertain whether the council makes a net contribution from individual assets and therefore a return on investment.

“Even where properties make a reasonable return it may be preferable to sell the assets, if the market permits, and redirect capital receipts or anticipated future costs of refurbishment towards frontline services.

“Consideration should also be given to service and user needs when agreeing a way forward.”

The CFO also spoke about “missed opportunities to realise further efficiencies or increase customer convenience” could also have a financial impact and all potential opportunities should be recognised.