Council to sell assets to avoid bankruptcy

A council has decided to take the "drastic action" of selling off a number of its buildings to help bridge an £80m gap in finances.

Somerset Council has authorised the sale of non-operational assets, with a combined value of between £17m and £21m.

The authority declared a financial emergency in November 2023 and has since been looking at cutting services, increasing council tax, and reducing staff numbers.

The sites for sale include Manor Farm in Lopen, Market House in Taunton, Barns Close Industrial Estate in Dulverton, and Cornhill Complex in Bridgwater.

Alongside bridging the existing £80m financial shortfall for the current year, the authority had predicted a £100m budget gap for 2025 / 2026.

The council, which made the decision at an executive committee meeting on Monday, said the costs of delivering services - particularly adult social care- were rising significantly faster than its income.

It also blamed national factors such as inflation and higher interest rates.

In the official report which laid out the decision, the authority stated they were "committed" to reducing its property and land portfolio to reduce holding and management costs and bring in additional funds.

In the same document, the council said there are several buyers lined up for some of the sites, who intend to redevelop the land into supported living units, student accommodation, and housing for key workers.

Other sites will be auctioned off or sold on the open market.

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