Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, pursuant to the Answer of 29 August 2025 to Question 69050 on Local Government Finance, whether his Department is informed of the type of asset being disposed of.

The Flexible Use of Capital Receipts direction was introduced in 2016 by the previous government and remains substantively unchanged. It permits eligible councils to use the proceeds of asset sales to fund transformation and activities that produce ongoing savings and efficiencies. Use of the flexibility is at the discretion of councils, but the government is clear that its use should represent value for money and be in the best interests of local residents.

The direction requires that councils must send their plans to use the flexibility to the Secretary of State for MHCLG. The direction specifies minimum information requirements that must be provided, including the value and purpose of capitalisation, and details of relevant efficiency savings. It is not a requirement for councils to provide details of asset disposals, though councils may include these details in their plans. Further details on disposals may be included in councils’ annual accounts and capital strategies.