Councils could be allowed to use capital receipts to pay the one-off costs of reforming their services under new rules out for consultation.
As part of the small print of the Spending Review, which was unveiled by the chancellor last week, money raised from the sale of assets could be made more flexible in a bit to encourage councils to sell off unwanted buildings. Under previous rules, money raised by the sale of capital assets could only be used for capital spending – not for revenue.
