Debt-ridden Slough Borough Council prepares for assets sell-off

Officers working at Slough Borough Council have produced a plan they hope will reduce the authority's debts

A council in financial crisis has outlined how it plans to sell half of its £1.2bn assets to stay afloat.

Labour-run Slough Borough Council effectively declared bankruptcy last year after amassing debts of £760m.

The authority has produced a report suggesting its borrowing levels could become sustainable by 2027 if it raises £600m by selling land and properties.

The government was "minded" to approve this disposal of assets, according to the Local Democracy Reporting Service.

The council has been constrained since issuing a section 114 notice, which is considered the local authority equivalent of bankruptcy and means it could only spend on services deemed essential.

Its plan to return to normality involves setting up a committee of councillors to decide on the sale of assets on a case-by-case basis.

The Odeon cinema in Basingstoke is one of four sites owned by the authority that has already been identified as being suitable to offload.

The Odeon in Basingstoke is one of a number of out-of-borough properties owned by the council

The report said: "The council's financial position is unsustainable.

"The council has developed a significant asset portfolio, both within and outside the borough, which has been financed by debt.

"A phased asset disposal programme could realise capital receipts in the region of £600m over the next five years."

The sale of any property valued at £1m or more would have to be signed off by the authority's cabinet.

Council officers have recommended the plans for approval, and they will be considered by the cabinet at its next meeting on Monday.