§ Mr. DrewTo ask the Secretary of State for Transport, Local Government and the Regions if he will make a statement on the circumstances in which local authorities are not obliged to sell assets at best value. [21526]
§ Ms KeebleThe Government's general policy on local authority land disposals is that authorities should seek to obtain the open market value when making disposals. However, local authorities' land disposal powers under the Local Government Act 1972 are discretionary and they may exercise them in any manner they wish.
The consent of the Secretary of State is required before an authority may dispose of land for less than the best consideration that can reasonably be obtained. Consent is not required to any disposal for a lease of seven years or less.
For certain classes of disposal any necessary disposal consent has been given by the Local Government Act 1972 General Disposal Consents 1998 and in these circumstances it is not necessary for a local authority to apply for a specific disposal consent. For example, the General Consents include the disposal in certain circumstances of the freehold or leasehold interests in property to be used for charitable, recreational and certain retail and commercial uses.