The multicoloured beach huts of Bournemouth, Christchurch and Poole could be sold into a special purpose vehicle by the council.
The scheme proposed by the Conservative-led council involves selling the huts to a company controlled by the authority. It hopes to generate a £54m capital receipt under the plan, which would see 3,605 beach huts transferred to the new company in a deal mostly funded by third-party debt.
The proposals, drafted with the help of KPMG, would see the council exchange the annual rental income – worth about £5m a year – for a large one-off payment. The council has not disclosed the financial and advisory fees involved or any proposed rent increases.
Critics have accused the council of “casino capitalism”.
