In general, the Government are always interested in securing the greatest value for money for the taxpayer. Government Accounting’s General Principles (24.2.1) exhorts:
“Once surplus assets have been identified, they should be disposed of as quickly as possible subject to value for money considerations.”
Value for money bears on nearly all aspects of deployment of public resources: procurement, asset management, disposals, administrative systems and financing arrangements such as leases and PFI transactions. It means finding solutions which achieve the best mix of quality and effectiveness for the least outlay.
However, all aspects of a transaction or proposed transaction, financial or otherwise, should be first taken fully into account, comprising any potential auxiliary or tangential benefit, including possible social and community benefits that may be attendant upon the issue, before the terms of a disposal, or other physical conveyance, are concluded.
The Surplus Public Sector Land Taskforce was set up as part of the Government’s response to the Barker Review of Housing Supply to examine cost-effective options for accelerating the release of public sector land in order to increase housing supply.
Specifically with regard to local authority disposals, the Government’s policy is that local authorities and other public bodies should dispose of surplus land wherever possible. Generally it is expected that land should be sold for the best consideration reasonably obtainable. But it is recognised that there are circumstances in which a local authority may consider it appropriate to dispose of land at an undervalue.
The General Disposal Consent issued in August 2003 in ODPM Circular 06/2003 enables local authorities to make land disposals which will contribute to the promotion or improvement of the economic, social or environmental well-being of an area at less than best consideration.