1. ITV Report

Northamptonshire County Council to sell HQ in £64m deal

Northamptonshire County Council's headquarters. Credit: ITV News Anglia

Northamptonshire's troubled county council has agreed to sell its new headquarters - and then lease it back - in a deal worth 64 million pounds.

Bosses say the sale to Canada Life Investments, advised by PwC, will help fund the transformation of its services.

It comes with the authority in financial crisis and the Government set to send in commissioners to run it.

The sale and leaseback agreement would be for 35 years.

Canada Life Investments say it is a "good example of private and public sectors working together in mutual benefit.”

“I am confident that the transaction will provide the funding required to enable the transformation programme to set the council on a strong future trajectory.

“The advice received is that this deal represents very good value for money for taxpayers of the county and generates more money than the construction costs of the building.

“While this kind of deal may be less usual in the public sector the lease back arrangements being entered would be seen as standard finance practice in the private sector.

“Put bluntly without this sale far more service cuts would be required and the process of reorganising local governance in the county would be carried out against a backdrop of unsustainable cuts to the very services the new councils would be created to run.”

– Cllr Matthew Golby, Council Leader

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