The Government’s announcement earlier this month that 20 per cent of all land and property assets owned by the soon to be abolished regional development agencies (RDAs) will be sold on the open market – rather than being transferred to councils or the new local enterprise partnerships (LEPs) – will surely ruffle a few feathers.
For a start, a number of RDAs had stated in their asset disposal plans, submitted to the Government earlier this year, that they wanted a number of their assets to go to councils or LEPs so that they can continue to be managed locally.
Other RDAs had said in their plans that selling assets on the open market would not be preferable because this would exclude local authorities unable to place high enough bids to purchase land and property because of swingeing budget cuts.
They suggested that, as a solution, councils should take over some assets with a view to purchasing them at a later date when purse strings aren’t so tight – but the coalition has ruled out this option as well.
The RDAs declined to comment other than in basic statements "welcoming" the proposals. But I suspect that many in local government will consider it a blow that such a significant amount of state-owned property is being sold off to the private sector rather than being retained and benefit the local economy – particularly when you look at some of the assets earmarked for sale.
Included on the official list are a number of former coal and steel-mining sites, including the former Corus steelworks in Birmingham and Barnsley's Grimethorpe Colliery - which was made famous by director Mark Herman's 1996 film Brassed Off.
Nottinghamshire's Sherwood Energy Village, a not-for-profit business park that went into liquidation last year, is also on the list. It is unclear what impact the sale will have on the plans of a group of tenants who were last year looking into the possibility of setting up a workers' cooperative to take over ownership and/or management of the site.
The news also calls into question how Newcastle's planned development of the former Scottish & Newcastle Brewery site into a new science business and residential hub might progress once the site is sold off.
MPs have warned against a "fire sale" of RDA assets, claiming that this would be a bad idea "at a time when land prices remain depressed".
And, at Regeneration & Renewal’s Northern Summit in Manchester last October, delegates predicted a "smash and grab" of public land once the RDAs are abolished.
Are both these scenarios now looking increasingly likely? And would the assets be put to better use in private hands?
Photo by Draco2008
