Cash-strapped Slough Borough Council set to sell off housing land

Slough Borough Council has been trying to raise funds since effectively being declared bankrupt in 2021

Land earmarked for hundreds of homes and shops is set to be sold to ease a cash-strapped council's financial woes.

Slough Borough Council paid £24.2m for the former Thames Valley University site in 2017 plus stamp duty of £1.4m.

After it effectively declared bankruptcy in 2021, it is selling up to £600m of assets to reduce its debt.

A council report said a potential buyer for the land had been identified but the price tag would not be revealed.

The local authority had entered into a joint venture with regeneration company Muse to transform the site, which is also known as the North West Quadrant.

It would have included 1,340 homes, 25% of which were to be affordable, 467,180 sq ft of office space and 43,900 sq ft of retail.

Slough Borough Council purchased the site for £24.2m.

In July 2022, the council announced it was backing away from the plans as it could no longer financially commit to the 10-year project, which is yet to receive planning permission, and was seeking a buyer.

According to a report prepared for the council, it could pay half of the £1.9m pre-development costs and interest if the scheme does not proceed.

If the sale of the land in William Street is agreed, the project could still be delivered by the buyer and Muse who have an "ongoing relationship", the report said.

The government-appointed commissioners, overseeing the council's recovery, said: "This disposal is essential to meet the financial recovery goals and is considered to be best value in the market today."

The commissioners were brought in in 2021 after the local authority amassed a £760m borrowing bill.