The Department for Communities and Local Government has announced that from April onwards councils will be able to sell capital assets in order raise money for ICT projects.
At the moment, councils are not authorised to use receipts from capital asset sales on services; however, in the Autumn Statement, George Osborne declared new guidelines should be instituted this year.
Accordingly, the DCLG has published new guidelines on capital assets’ spending for councils. These will affect a variety of services such as the back-office and administrative shared services centres with other public authorities, taking a digital approach to the delivery of more efficient public services and improving systems and processes against fraud and corruption.
Councils will need to list the projects they wish to qualify for capital sales receipts, as well as present a cost/benefit analysis to go alongside each project.
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