Radical proposals to save Salford city council more than £100million have been put forward by the authority’s opposition Conservative group. Tory leader Coun Robin Garrido is arguing that if their ideas were put into effect there would be no need for the 2.99 per cent increase in general council tax levy for 2023/24, although he agrees with the 2pc increase in the adult social care precept.
This would mean the sale of the authority’s 25-year lease on the New Bailey office block and the sale of 100 Embankment. The city council borrowed the money to build the Embankment and Coun Garrido argues that the sale of the lease and the Embankment could put £80m back into the authority’s coffers and eliminate the hefty interest payments on its loan.
Such moves would also release ‘earmarked reserves’ of £40m held by the council which can only be used for the two buildings, he said. The Conservatives are also suggesting offloading half-empty office space at the city council’s headquarters in Swinton for development of ‘much-needed’ social housing.
“It would be a perfect location for that,” said Coun Garrido. “It’s right in the middle of Swinton, with the road network, buses, library, shops and services.” And he is vehemently opposed to Salford city mayor Paul Dennett’s desire for the council to wholly own the AJ Bell Stadium, home to the Salford City Red Devils rugby league club.
The council and property giant Peel currently each own half of the stadium, but Peel wants out. A ground swap with League Two football club Salford City has been ruled out and the cash-strapped rugby league club is in the process of being bailed out by the city council to the tune of £350,000.
This is because the city mayor wants the authority to own the stadium. Coun Garrido: “The mayor seems determined for the city council to become the sole owner of the A J Bell stadium, arguing that it’s an asset to the city. He keeps going on about it being of benefit to the community.
“But there are 270,000 residents in Salford and only 2,500 of them attend matches at the stadium. I don’t see how there is any substantial benefit to the community in owning a stadium that’s worth probably about £30m. Selling our half of it could raise a further £15m.
"It's public knowledge that Salford City FC were willing to buy the stadium in a ground-swap arrangement, but the mayor said 'no'. The mayor is always bleating about how the city council is short of money. Well, there are ways to use our resources better.
"Since the Covid pandemic, there is a lot of empty office space because people - including employees of Salford city council - are being allowed to work from home. So it would make sense to get rid of excess office space."
The Local Democracy Reporting Service has contacted Mr Dennett's office for comment. Although he has so far not issued a response to Coun Garrido's proposals. However, in his budget speech at the full council meeting on February 22, Mr Dennett said: "I don't believe in selling off our assets.
"We need to get back to a time when local authorities owned assets and sweated them and used them to generate revenue. "The Tory orthodoxy is to sell off everything. Sell it all off and let our friends in the market benefit from it. It's an absolute scandal."
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