Plans under fire: Shropshire Council could sell off 'under-performing assets'

But the plan has come under fire from the council's Labour leader, who said it "flew in the face of the principles of public services and community".

A report on the council's new framework for an "asset management strategy" for the land and buildings owned by the authority says the council should sell any asset not making money unless its value is expected to increase.

The paper outlines how the plan is based around supporting the council's attempts to create new income streams, bring in money from sales, reduce the costs of repairs and maintenance, and provide buildings which fit with the services it provides.

It says: "Any asset used in the operation of Shropshire Council and not generating income, should only be retained if the value is expected to increase significantly and above the general price index of inflation pertaining to that type of land or property."

The proposals have met with some criticism from the leader of the council's Labour group, Alan Mosley, who questioned the drive to sell off land and buildings.

He said: "This statement would seem to fly in the face of the principles of public services and community. It shows the depths to which the Shropshire Council has plummeted.

"Council assets belong to the people and are there to provide services to residents so that the extent of community benefit should be a significant criteria not merely monetary gain.

Liabilities

"Obviously there may be times when it is appropriate to dispose of an asset and invest in new ones but increasingly, Shropshire Council shows itself up as an authority that is aware of the price of everything and the value of nothing."

The paper, from council officer Steve Law, warns of how buildings and land can become a cost to the authority.

It states: "If assets are not managed and maintained in an appropriate way they become liabilities on the council’s revenue account."

The paper outlines how the council wants to try to raise money through property investment.

Although not specifically mentioned in the paper the council has completed one high profile property investment in Shrewsbury's shopping centres, for £51m.

The paper states: "The purpose and key objectives of the strategy are: To generate and diversify revenue streams through effective property investment.

"Led by the council’s commercial strategy the investment plan will generate new and durable income streams through the re-development or repurposing of its existing assets and/ or the acquisition of new assets which will deliver a strong financial yield."

The plan specifically outlines that the sales are being considered to raise money for the authority.

It says it is intended "to generate receipts to support our capital programme. Rationalise and reduce the estate to deliver receipts and support the council’s capital aspirations".