Disposals 2021-22

This decision seeks the approval for the disposal of and marketing for sale of a number of surplus sites in order to generate capital receipts to support the future capital investment programme and reduce running costs. In order to achieve its duty of best value the method of disposal for each property will be considered during the preparation for marketing. The disposals are expected to generate capital receipts estimated at between £79.9 million and £102.7 million, and save £4.8 million in annual running costs.

The Deputy Mayor for Policing and Crime is requested to:

1. Approve the disposal and marketing for sale of the freehold properties detailed in this paper as included in the revised capital receipts budget submitted to MOPAC in January 2021 as part of the wider budget submission.

2. Note the disposal of these properties will generate estimated receipts of between £79.9 million and £102.7 million in support of the Capital Programme.

3. Note the disposal will contribute £4.8 million p.a to the £48 million target revenue savings included in the Medium Term Financial Plan through a reduction in running costs.

1. Introduction and background

1.1. In accordance with MOPAC Scheme of Delegation and Consent the disposal of all properties with an estimated value of £1 million or above require MOPAC approval on a case by case basis before the property is marketed. Any proposed sales with a value under £1 million may be completed by way of delegated powers and reported retrospectively. Should a disposal with a value below £1 million have any unusual features or be of special interest, then MOPAC will have the opportunity to approve the final sale.

2. Issues for consideration

2.1. There remains uncertainty as to the future allocation from Government of additional officers to the Metropolitan Police Service (MPS) and their funding from the 20,000 national police officer uplift, and subsequently the roles which additional officers will undertake. The MPS are confident that the sites listed below are not required under any of their models for the estate to meet officer growth requirements.

2.2. There are 16 operational sites which are expected to become surplus during 2021/22 and for which authority is sought to market and dispose of. The disposal of these sites supports the Police and Crime Plan by generating receipts to re-invest in the retained estate and so supporting the objective that “officers are given the tools to do their job”. In addition, the disposals reduce annual revenue costs, and avoid future investment commitments.

2.3. Migration to alternative accommodation if not already complete will occur prior to completion of the sale of the properties. None of the sites proposed for disposal has a public access function.

2.4. In order to achieve MOPAC’s obligation on best value, the alternative routes/approaches for disposal will be considered for each property during its preparation to market for sale.

2.5. When bidding on the basis of residential redevelopment bidders will be asked to acknowledge that when making an offer they have had regard to relevant planning policies, including existing local authority policies on minimum affordable housing requirements, the Mayor's Supplementary Planning Guidance on affordable housing and the draft London Plan. Parties will be encouraged to review the GLA funding available for the provision of affordable housing through the Mayor's 'Homes for Londoners: Affordable Homes Programme 2016-2021.’

2.6. MOPAC is fully supportive of the need to improve fire safety. MOPAC sought TfL Legal advice which advised that for freehold sales, MOPAC cannot impose enhanced planning or other obligations (over and above statutory requirements) if that would result in a lower receipt. The MPS valuers (Montagu Evans) has advised that the implementation of the enhanced regulations would have a detrimental impact on the level of receipts. Therefore, this paper recommends to dispose of sites unconditionally. In order to help achieve wider GLA objectives for the improvement of fire safety, bidders for the properties, will be asked to acknowledge that, when making an offer, they have had regard to relevant planning policies, including existing local authority policies, London Fire Brigade advice and to the Fire Safety Requirements set out in the GLA London Development Panel 2. Buyers are to acknowledge the Mayor’s Fire Safety Guidance Note and are encouraged to comply with the enhanced regulations including the white goods registration scheme and the inclusion of information in the residents’ manual.

2.7. In addition, there are a further two residential sites each with a value below £1 million which are surplus and are to be disposed of.

3. Financial Comments

3.1. The sites noted above are expected to generate capital receipts estimated at between £79.9 million and £102.7 million as set out in Part 2 and which will contribute to the overall capital receipts to help fund the capital programme.

3.2. The aggregated revenue costs in a full year of the maintenance and rates for the properties to be sold is £4.8 million.

4. Legal Comments

4.1. There are no direct legal implications arising from the recommendations contained within this report which are not mentioned elsewhere in this report, which seeks approval for the sale of surplus properties detailed above and in Part 2.

4.2. MOPAC has the power to dispose of surplus properties (including land) under paragraph 7 (2) (b) of Schedule 3 of the Police Reform and Social Responsibility Act 2011 (“the Act”).

4.3. The Commissioner may also do anything which is calculated to facilitate, or is conducive or incidental to acquiring and disposing of property (apart from land) but only with the consent of MOPAC under paragraph 4 (2) (b) of Schedule 4 of the Act.

4.4. The report confirms that the disposals will generate capital receipts that will assist MOPAC in securing the maintenance of the MPS and ensure that it is efficient and effective.

5. Commercial Issues

5.1. Alternative routes/approaches for disposal will be considered for each property during its preparation to market for sale.

6. GDPR and Data Privacy

6.1. MOPAC will adhere to the Data Protection Act (DPA) 2018 and ensure that any organisations who are commissioned to do work with or on behalf of MOPAC are fully compliant with the policy and understand their GDPR responsibilities.

6.2. The project does not use personally identifiable data therefore there are no GDPR issues to be considered

7. Equality Comments

7.1. MOPAC is required to comply with the public sector equality duty set out in section 149(1) of the Equality Act 2010. This requires MOPAC to have due regard to the need to eliminate discrimination, advance equality of opportunity and foster good relations by reference to people with protected characteristics. The protected characteristics are: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.

7.2. There are considered to be no equality or diversity issues arising as a result of these proposed disposals.

8. Background/supporting papers

8.1. Appendix 1 – MPS Report (b_MPS Part 1).