MPs and Peers launch inquiry into how to use £250bn public sector assets more effectively

A cross-party group of MPs and Peers is to examine how local authorities can use their £250bn property assets more effectively.

The inquiry by the All Party Urban Development Group (APUDG) will also examine the barriers to growth that exist at a local level and analyse how they can be overcome.

Key issues that will be considered include:

• Why relatively little use has been made of asset-backed vehicles such as LABVs, when they have been widely touted as an effective way to combine public sector assets with private sector expertise. The group will look at the barriers to their further utilisation
• The pressures that have prevented local authorities from using asset disposals to create the greatest opportunity for regeneration and development
• How public assets should be used in designated areas such as Enterprise Zones so as to maximise their potential for growth. The group will look at how Enterprise Zones could be improved to make best use of public assets
• The barriers to local authorities making greater use of existing powers – such as Compulsory Purchase Orders, Local Development Orders, master planning and Area Action Plans – to integrate public and private assets to achieve maximum impact
• The changes to the planning regime that would help local authorities to maximise the value of public assets in planning for development
• The extent to which the private sector can encourage and support the public sector to rationalise their use of public property, and release those assets that could make the maximum contribution to regeneration and growth.

Paul Uppal MP, the Chair of the APUDG, said: “Regeneration is a key driver of economic growth but in many parts of the country development is at a standstill. In order to drive growth local authorities will need to make the best use of the powers they have at their disposal and the assets they possess – but this isn’t about telling them to simply sell their land and property to developers.

“To get development moving we must identify what barriers local authorities face, and help both the public and private sector to work more effectively with each other to manage public sector assets, kickstart development and take advantage of the opportunities created by the wider growth agenda.”

Written evidence will be taken from a range of public and private sector experts over the summer. Oral evidence sessions will then be held in Parliament in the autumn, before a final report is published.