MICHAEL GOVE’S government department will encourage councils in England to sell publicly owned buildings and other assets worth up to £23 billion under plans to plug budget shortfalls.

The plans by the Department for Levelling Up, Housing and Communities would give councils greater flexibility to use money raised from asset disposals to pay for day to day spending.

It comes amid a multi-billion-pound crisis in local government funding, with Birmingham City Council, Europe’s biggest local authority, declaring bankruptcy in November. Tory governments have cut local authority funds by over 40 per cent since 2010.

Chartered Institute of Public Finance and Accounting chief executive Rob Whiteman said it was a “sticking plaster” solution because it would not address longer-term pressures on their finances.

Think tank IPPR North director Zoe Billingham said: “It’s a one-off capital receipt to fund ongoing revenue pressures, which will last for as long as they have buildings to sell.

“It’s also a one-way street. Once public assets have been sold, I would be shocked to hear at a future date any council or government will buy them back.

“It’s a temporary fix for a difficult time. It’s not sustainable.”

Dozens of councils have already earmarked libraries, civic halls, swimming pools and community centres for sale.

A Department for Levelling Up, Housing and Communities spokesperson said it is engaging with the sector over options.