Michael Gove is planning to order a £23bn “fire sale” of local government buildings to plug the funding gap.
Under plans being examined by the Department for Levelling Up, Housing and Communities, councils will be given greater flexibility to use money raised from asset disposals to address their budget pressures.
In a consultation with town hall bosses closing on Wednesday, ministers estimate that councils have “investment properties” valued at £23.2bn, which could be disposed of to help meet budget shortfalls with proposed changes to the rules that would allow sales without government approval.
The government said its aim was to encourage the sale of assets held only for revenue, and not buildings or places used for the “delivering of the objectives of the local authority”.
