5. Local authorities are given powers under the 1972 Act to dispose of land in any manner
they wish, including sale of their freehold interest, granting a lease or assigning any
unexpired term on a lease, and the granting of easements. The only constraint is that a
disposal must be for the best consideration reasonably obtainable (except in the case of
short tenancies, see footnote 3, paragraph 1 of the Consent), unless the Secretary of State
consents to the disposal.
6. It is Government policy that local authorities and other public bodies should dispose of
surplus land wherever possible. Generally it is expected that land should be sold for the
best consideration reasonably obtainable. However, it is recognised that there may be
circumstances where an authority considers it appropriate to dispose of land at an
undervalue. Authorities should clearly not divest themselves of valuable public assets
unless they are satisfied that the circumstances warrant such action. The Consent has
been issued to give local authorities autonomy to carry out their statutory duties and
functions, and to fulfil such other objectives as they consider to be necessary or desirable.
However, when disposing of land at an undervalue, authorities must remain aware of the
need to fulfil their fiduciary duty in a way which is accountable to local people.
The Consent
7. Section 128(1) of the 1972 Act confers on the Secretary of State power to give a general
consent for the purposes of land disposals by local authorities carried out under their
powers in Part 7 of the 1972 Act. The Secretary of State's sole statutory function in respect
of the exercise by local authorities of these disposal powers is to give or withhold consent
to a proposed disposal in cases where his consent is required.
8. The terms of the Consent mean that specific consent is not required for the disposal of
any interest in land which the authority considers will help it to secure the promotion or
improvement of the economic, social or environmental well-being of its area. Where
applicable, authorities should also have regard to their community strategy. Although these
criteria derive from the Local Government Act 2000, their use in the Consent is not
confined to authorities with duties and powers under that Act. Therefore, authorities not
covered by the 2000 Act can also rely upon the well-being criteria when considering
disposals at less than best consideration. It will be for the authority to decide whether these
decisions taken comply with any other relevant governing legislation. In all cases, disposal
at less than best consideration is subject to the condition that the undervalue does not
exceed £2,000,000 (two million pounds).
9. In determining whether or not to dispose of land for less than the best consideration
reasonably obtainable, and whether or not any specific proposal to take such action falls
within the terms of the Consent, the authority should ensure that it complies with normal
and prudent commercial practices, including obtaining the view of a professionally qualified
valuer as to the likely amount of the undervalue.
Can anyone say that they have actually broken any laws ? Also is the sale of a public asset such as a building the same as selling land.
