DISPOSAL OF CAPITAL ASSETS
76. The Royal Institution of Chartered Surveyors
argued that the provisions for the disposal of capital assets
contained within the Local Government Act 1972, need to be amended
to bring them into line with the Local Government Act 2000.
"One source of revenue for local authorities
is the use or disposal of their property assets that are then
converted into capital receipts. Local authorities may currently
do so under section 123 of the Local Government Act 1972. Under
that Act's definition of 'best consideration' local authorities
may dispose of the property assets for returns below their market
value. This definition should be expanded to incorporate the Local
Government Act 2000's definition of best consideration as including
the 'social, economic and environmental well-being of the local
community.' This important amendment will significantly improve
the ability of local authorities to dispose of their property
assets where it is to the long-term benefit of their communities."
The Minister promised to look into this.
We recommend that the Bill amend Section 123 of the Local Government
Act 1972 in relation to disposal of capital assets, to take account
of the well-being power introduced in the Local Government Act