Bracknell Forest Council’s refusal to reveal which investment property it has sold has attracted national attention.
The council bought six out-of-borough investment assets as part of its £86.6m Commercial Property Investment Strategy in 2016. They are: Valentine South Retail Park (Lincoln); the Currys contact centre offices (Sheffield); a warehouse in Stowmarket, Suffolk; an office in Southampton; a warehouse in Redditch; and offices in Northampton.
The council was able to buy these through the Public Works Loan Board (PWLB), which provided loans for councils to purchase investment assets to generate income. Councils were effectively banned from making new acquisitions following the abolition of the PWLB and restrictions imposed in November 2020, after some authorities made poor investments that left them with large debts and reduced income.
Last December the Labour cabinet agreed to sell one of the six assets to the existing tenant. The Local Democracy Reporting Service submitted a freedom of information request asking for the identity of the property, the purchaser and the income generated, but the council refused to disclose the details citing commercial confidentiality.
The story was picked up by Hold The Front Page on Tuesday, February 3.
Councillor Paul Bidwell, the cabinet member for economy and regeneration, said proceeds from the sale will be used to help balance the council’s budget for 2026/27.
He told councillors:
“The use of the receipts of the proceeds from the sale of the property agreed by cabinet in December last year will be used to supplement the revenue budget using our flexible use of capital reserves approach.
“This funding will be focused on funding costs related to transforming our services and working towards cost savings and cost avoidance to enable a balanced budget in the future.
“So how will we replace this income? The revenue income from the assets which are sold would not be replaced as the council is no longer able to purchase or invest in out-of-borough investments.
“The capital receipts can be used for transformational purposes, supporting the ongoing revenue budget.
“Our strategy for some of the assets will be to regularise lease terms with the existing tenants or relet to maintain income streams and improve capital appreciation of the portfolio.”
Cllr Bidwell clarified the position at a meeting of the council’s overview and scrutiny commission last month. The council will keep the remaining five properties for rental income but cannot buy further out-of-borough investments under the current restrictions.
James Aldridge, Local Democracy Reporter
