Question to the Department for Levelling Up, Housing & Communities:

To ask Her Majesty's Government whether the sale of a local council's assets at below market value has to be reported to (1) the Ministry of Housing, Communities and Local Government, and (2) the council’s auditors; and whether they would expect such sales to be included in a council’s annual accounts and report to residents.

Public bodies should generally dispose of surplus land at the best possible price reasonably obtainable. However, the Government recognises that disposing of land at less than best consideration can sometimes create wider public benefits.

With regards to land held in the General Fund, a general consent issued under section 123 of the Local Government Act 1972 allows local authorities to dispose of land held for purposes other than housing or planning at an undervalue of less than £2 million without seeking a specific consent from the Secretary of State where they consider it will help secure improvement of the economic, social or environmental well-being of the area. Specific Secretary of State consent is required for disposals of such land at an undervalue of more than £2 million. Specific Secretary of State consent is required for disposals of land held for planning purposes regardless of the sale value.

There are also specific rules for housing land. Under section 24 and 25 of the Local Government Act 1988, we expect local authorities to apply to the Secretary of State to dispose of housing assets at less than best value.

It is a matter for local authorities to decide whether to include disposals in their annual accounts and reports to residents, and to make appropriate audit arrangements.