Issue details

Proposed decision –

The Deputy Leader to:

1. APPROVE a programme of surplus assets proposed for disposal in 2026/27, and;

2. DELEGATE authority to the Director of Infrastructure, in consultation with the Deputy Leader and relevant Cabinet Members as required, to agree all necessary disposal terms and enter relevant contracts.

Reason for the decision

Given the scale, financial materiality and strategic impact of the proposed annual disposals programme, approval is required at Cabinet Member level to ensure appropriate democratic accountability, alignment with the council’s Asset Management and Financial Strategies, and compliance with fiduciary and governance requirements. Officer delegation will be used for implementation within the approved parameters. Agreeing the programme provides wider context and transparency whilst also giving improved the efficiency and pace to the disposal process. This approach strengthens democratic accountability and KCC’s control environment.

Background

Kent County Council uses property assets to support delivery of its services. Once property assets are no longer needed and declared surplus, the Council has a fiduciary responsibility to mitigate holding and management costs in respect of the property it holds. Where assets are declared surplus, KCC will dispose of its freeholds in line with its statutory duty and the receipts are used to fund its capital programme and medium-term financial strategy.

In recent years, the scale of the capital programme has delivered over £20m annually.Historically, KCC has taken individual Member decisions for each asset disposal where formal approval was required (Constitution requirement where estimated receipt likely over £1m) and then the decision delegated to the Director of Infrastructure to agree final terms. The scale, frequency and strategic role of disposals have evolved, and the historic approach no longer provides the most effective governance framework.

To note, individual disposal decisions will still be brought to Members in accordance with the Property Management Protocol as set out the Councils Constitution. In addition, a progress report will be brought to the committee on a bi-annual basis to update on the status of the programme.  Should any asset, not listed in the programme be brought forward that is expected to have a value greater than £1million, this will subject to a separate key decision process.  

In conclusion, this wholesale programme approach will:

·   Avoid duplication of decision-making effort

·   Provide a clearer view of financial and strategic impact at the outset

·   Improve the ability to take a whole portfolio view

·   Overall quantum, risk and dependencies are better understood

·   Clearer visibility of the implementation of KCC’s Asset Management Strategy

·   Endorsement of the strategic direction of travel with clearer accountability and Audit trail.

The report will identify all assets currently being considered for inclusion. These may be assets already declared surplus or may likely be declared surplus during the year subject to further consideration.

Options (other options considered but discarded)

Option 1 – Progress with a programme approach to disposals - Recommended

Option 2 - Consider disposals on a piecemeal basis - Discounted

Option 3 – Cease the delivery of the Disposal programme - Discounted

How the proposed decision supports the Council’s Strategic Statement

The proposed annual Disposals programme directly supports the Council’s Strategic Statement, ‘Reforming Kent 2025–2028’, by enabling a more strategic, transparent and disciplined approach to asset management. It supports organisational reform, improves value for money, strengthens financial sustainability, and ensures that the Council’s estate is aligned to service need and in the best interests of Kent residents.

The proposed decision supports the Council’s Strategic Statement by raising capital for reinvestment in KCC services as set out in its Medium-Term Financial Plan whilst also streamlining KCC’s property portfolio.