NEWPORT council's cabinet has given the go ahead to a proposal to see where savings can be made by selling council-owned property.
A report which was presented at a cabinet meeting yesterday has suggested the council may consider selling its assets and spend the money on frontline services instead.
The 'Review of the Commercial Estate' report was put together by Newport Norse which manages the council’s 400 buildings and 1,000 parcels of land.
Newport Norse suggested a review into how to manage the council estate more efficiently and “improve commercial viability”.
The cabinet councillors approved the proposal, calling it “very important”, and agreed adding a deadline to the review of six months.
Cabinet member for licensing and statutory functions, Cllr Bob Poole, welcomed the proposal and said: “I have been waiting for this for a long time.”
The council’s estate includes both “operational property”, including schools, offices and housing, and “non-operational property” including investment properties like shops, theatres and industrial units. These commercial properties bring in an annual income of more than £1 million from leases and licences.
The council has already recently sold many of its leases. In 2013/14 Newport council sold 21 leases bringing in capital receipts of £285,620.
Until the end of 2016, 50 of the council’s leases are due to come to an end meaning the council has a chance to review the rent.
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.
“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.”
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