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Departmental Buildings

Volume 495: debated on Tuesday 30 June 2009

To ask the Chancellor of the Exchequer what (a) rules and (b) procedures apply to (i) the sale by Departments of property they own and (ii) the allocation of any proceeds from the sale. (282985)

[holding answer 29 June 2009]: All central Government Departments were required to publish an Asset Management Strategy (AMS) around the time of the 2007 Comprehensive Spending Review. Departmental capital expenditure limits are agreed at spending reviews and set net of the capital income that Departments are able to retain in capital budgets, as set out in AMSs. To incentivise efficiency in asset management, Departments are able to retain up to 20 per cent. more than the forecast capital income to fund further investment. Any further retention of income is considered on a case-by-case basis by the Treasury, with the aim of encouraging participation in wider market activities and disposal of surplus assets.

These arrangements are set out in the Consolidated Budgeting Guidance issued annually by the Treasury, which is available at:

www.hm-treasury.gov.uk/psr_bc_consolidated_budgeting