Decision Maker: Council

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: March 26, 2025

Purpose:

Content: This Council:   1.1  - Notes that at its meeting on 17 October 2024, Cabinet agreed in principle to sell the Old Dover Road Car Park in Blackheath Standard, the Charlton Village Car Park, and the Abery Streetcar Park in Plumstead, as part of the first phase of the council’s Asset Review.    1.2  - Notes that we are a well-managed council, but to remain financially stable, so we can continue to provide the frontline services that residents deserve, we must make the best use of the land and the properties that we own. Our priority is to ensure we get the best possible results we can under market conditions and deliver good value for money to benefit all our residents across the entire borough.   1.3  - Notes that the last Conservative government cut core funding to the bone for councils for 14 years with funding for Greenwich cut by 53% in real terms compared to 2010 – those cuts equate to £517 less for us to spend on council services per person. 14 years of Conservative austerity has meant we have had to constantly do more with less.   1.4  - Notes that this in turn has resulted in Greenwich council having to take tough decisions to balance its books. That after 14 years of underfunding by the previous Conservative government, spiralling costs, and fast-rising demand for services from residents in need, the strain on current borough budgets is enormous.   1.5 - Notes that while we are in a relatively strong and stable fiscal position compared to other boroughs, that is only because we have taken the tough but financially sound decisions that were necessary to keep the council solvent. Councils all around London are facing a financial tsunami of slashed income, rising costs, increasing demand for adult and children’s social care and ever-growing costs for temporary housing. We will do everything we need to ensure that frontline services that residents rely on are protected and that includes ensuring we make the best possible use of the land and properties that we own.   1.6  - Notes that the plans of disposal of assets cited are the inevitable results of decisions made by the previous Conservative government’s 14 years in power, including:   ·        That the policy allowing Councils to raise revenue for frontline services by disposing of surplus assets was implemented by the former Conservative Chancellor George Osborne ·        That research by the IPPR found that between 2010 –2023 around 75,000 public assets, worth about £15bn, have been sold by English councils in order to plug holes in their budgets, – and that’s due to decisions made by successive Conservative governments that deliberately under-funded and under-financed local government.   1.7 – Notes that:   ·        All of the car parks on the asset disposal list mentioned will remain in use until they are sold and the outcome of any disposal may not result in a change of use of the car parks. ·        The council has a track record of this activity as it has undertaken similar initiatives at other car parks without any economic impact on local businesses. ·        The Royal Borough of Greenwich has committed to supporting local businesses to ensure we have a thriving, growing local economy. That the council recognises the incredibly vital role that small businesses have in our community, that they are the backbone of our local economy and that the council have implemented several initiatives to help local small businesses thrive, including but not limited to: o   The Inclusive Economy Strategy: This strategy focuses on strengthening the economy; developing an entrepreneurial and innovative business environment; and attracting new high-value businesses to diversify the economy while supporting existing strengths. o   Business Support Programmes: Over 800 SNE’s have accessed locally funded programmes creating new jobs and protecting existing jobs. The council has established a series of business breakfasts, including ‘Meet the Buyers' events which saw over 150 businesses attend to meet suppliers. o   The Greenwich Living Wage campaign: The number of London Living Wage accredited businesses has risen by 54% since the scheme was launched. This initiative has benefited over 24,000 workers and significantly raised wages for 7,474 of the lowest-paid. o   The Greenwich Local Labour and Business (GLLaB) programme: This has supported over 1,200 residents into jobs in the past year and managed over 600 vacancies with local employers. o   Celebrating Business Achievements: The Royal Borough of Greenwich proudly hosted the 7th annual Best of Royal Greenwich Business Awards. This brought together over 350 businesses, celebrating their achievements and fostering a sense of community and collaboration among local entrepreneurs.   1.8 - Notes that this council welcomes that there was an improved financial settlement delivered by the new Labour government compared to previous Conservative government settlements. This has helped the council to remain financially stable and to balance its budget.   1.9  - Resolves to ask the Leader of the Council and the Cabinet Member for Finance, Resources and Social Value to write a joint letter to the Chancellor of the Exchequer and the Deputy Prime Minister that includes the following:   ·        Commending the work that the new Labour government has done to stabilise local government financing after 14 years of austerity imposed on councils by the previous Conservative government. ·        That they ensure that future local government finance settlements are sufficiently increased to give Councils the financial flexibility they need to not have to rely on asset disposals to balance budgets and ensure that frontline services are resourced. ·        That the next local government finance settlement is set over several years to allow councils to strategically plan their budgets for the future.