The Council’s spending need for the new budget is £417 million.  Even if the sale raised £3 million, which we doubt, it represents only 0.7% of the spending need.  The Council has general working balances of £9.6 million which are not ring fenced for specific purposes. 

The disposal of this land has most likely been in two previous budgets and has not been achieved without the need to increase Council Tax or take emergency measures. HALL estimate that if the land is sold for the purpose of building a maximum of 30 homes for elderly and socially disadvantaged on the southern part of the site the proceeds for that part could be as little as £750,000.  This may require the Council to take on an additional annual revenue cost for providing free home care of £250,000 per annum. 

The Council would also get a contribution from selling 4 sites on the northern part of the site – we estimate the income from this at around £600,000. 

In any case the sale of this land was agreed on the basis that it met the Capital Plan for 2007 to 2010.  Any lost revenue would be spread and recovered over 4 years

In our opinion loss of any supposed sales proceeds should not affect Council Tax levels or require emergency funding.  Any suggestion that the new Administration had to agree to this sale because the previous Administartion had, just doesn't stand up to our scrutiny.

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