Slough council sells warehouse for £2.5m profit to reduce debt

Slough Borough Council sold a warehouse in Bradford, West Yorkshire, to reduce its debt

A council has sold a warehouse for a £2.5m profit as it tries to cut its huge debt.

Slough Borough Council effectively declared bankruptcy in May 2021 and announced it would sell off assets to lower its £760m borrowing debt.

On Monday, it sold Expect Distribution warehouse in Bradford, West Yorkshire, for nearly £14.58m.

An Odeon cinema in Basingstoke and a hardware store in Wolverhampton will also be sold.

The authority effectively declared bankruptcy in May 2021

Two reports last year revealed a catalogue of failings, including rising debts at the Labour-run Berkshire local authority.

It is said the council needed to sell up to £600m of its £1.2bn of assets to reduce its debt.

The out-of-borough assets currently in the process of being sold were initially bought as investments for the council to receive income from the rent but they were not as lucrative as hoped.

Councillor Rob Anderson told the Local Democracy Reporting Service four properties will be sold as they are not required by the council and not used by Slough residents.

He said the sales "support the council's financial recovery by producing significant capital receipts and reducing our borrowing and debt charges".