A GUARANTEE currently cannot be given that council officers will be able to bring in £20million from asset sales before the end of the financial year.

The warning from BCP Council’s chief finance officer highlights failure to do this will see councillors recommended to use the back up option of borrowing the money through a capitalisation direction from government.

Details of which assets the local authority is aiming to sell to balance the current year’s budget have not been revealed publicly.

A report to next week’s cabinet meeting said in January full council will be asked to approve the disposal of “non-strategic assets”, which are listed in a confidential appendix.

Backing this request would delegate the final decision to the leader or deputy leader of the council and chief finance officer Adam Richens.

The report by Mr Richens says: “In presenting this appendix officers are confirming that at this stage it cannot be guaranteed that the additional £20m in capital receipts will be delivered by March 31, 2023, to avoid a capitalisation direction.

“However, the workstream will continue with best endeavours and for the February 2023 budget report for 2023/24 we will be in a more informed position as to what can be achieved.

“Much will depend on the appetite amongst potential buyers and any conditions they may attach to the purchases.

“If by the budget report the sales cannot be guaranteed for the March 31, 2023, deadline, then the council would be recommended to pursue the alternative of drawing down on the capitalisation direction in full or part.”

As reported, BCP Council has received a ‘minded-to’ offer from government to borrow up to £20million to plug a gap in this year’s transformation programme budget after the plan to sell off the beach hut stock was blocked by ministers.

This borrowed sum would need to be paid back over a 20-year period and there could be further conditions placed on the council. One requirement, which is due to take place “shortly”, is an external finance and governance review of the council.

The review is going ahead regardless of if the council takes the capitalisation direction, however, it has been delayed to the “reshuffle of ministers” in government, according to Mr Richens’s report.

The senior officer says the predicted surplus in 2022/23 has increased by a further £700,000 to £8.5million.

Work is progressing on the balanced budget position for 2023/24, which includes significant “savings, efficiencies and service reductions”.

Mr Richens’s report adds: “The councils budget position should be seen in the context of the funding gaps being signalled by all local authorities at this time be that due to demand pressures or due to the impact of the cost of living.

“The work to determine the feasibility of bringing forward £20m of non-strategic asset sales by the March 31, 2023, will be critical if the council is to avoid drawing down on the “minded-to” capitalisation direction.”