Middlesbrough Council approves asset sell-off to avoid bankruptcy

Middlesbrough Council's financial position has forced the sale, it said

Middlesbrough Council has approved plans to sell-off a raft of assets in an effort to avoid bankruptcy.

It comes after an overspend of more than £8.5m was forecast for the second quarter of the financial year.

On Tuesday night, executive board members agreed to sell off assets including buildings, car parks and golf courses.

The council's elected Labour mayor Chris Cooke insisted it "absolutely will" get a good price.

"I'd rather hold off than for us to do it wrong," he said.

"Because, ultimately, if we don't get the best price for stuff we can't do that transformational change."

A council asset review said the proposed sales could raise an estimated £33m, but would also see a reduction in long-term income of £1m a year.

Middlesbrough South and East Cleveland Conservative MP Simon Clarke said the council was holding a "fire sale" and questioned whether it was really approaching bankruptcy.

"It's important that we get full transparency as to the true financial situation of the authority," he said.

Zetland Car Park could be sold

Some residents have questioned where the raised money would be spent and worry the timing is "short sighted", given a possible change of government could bring changes to council funding.

But a recent report to the council's executive board said, without action, the authority could be forced to issue a section 114 notice, effectively declaring it bankrupt.

It asked the authority's executive to consider:

• The long-term use of the Town Hall and whether it justifies on-going investment

• Closure of Middlesbrough House, with staff relocated

• Closure of the Multi Media Exchange, relocating Middlesbrough Community Learning to the Cleveland Centre

• Sale of Hemlington's Viewley Centre, relocating children's services staff to other council buildings

• Disposal of Cannon Park car park for commercial redevelopment

• Disposal of Zetland Car Park and the Middlesbrough Municipal Golf Centre with covenants in place to secure their uses as a car park and golf club respectively

• Disposal of land east of Middlesbrough Municipal Golf Centre Driving Range and land on Stainsby Road, Acklam, for housing development

Mr Cooke said he wanted the council to stop being a "property developer", get rid of its expensive buildings and concentrate on key services.

"One of the things that we need to recognise is that we can't maintain luxury office spaces and then still try and maintain roads," he said.

"The situation financially is just not able to support both."

Other authorities in a similar position include Croydon Council, Birmingham City Council. and Nottingham.