A LOCAL authority which is grappling with huge budget cuts should consider cashing in on a large portfolio of farms and land it owns, a councillor has suggested.

An enquiry by County Councillor John Shuttleworth to Durham County Council revealed it retains ownership of 24 farms of varying size which encompass 2,238 acres of land.

The councillor claimed such assets, if sold, could fetch between £7m and £10m.

The county council – which recently warned of a further £100m in budget cuts – has confirmed it is reviewing the portfolio.

However, the National Farmers Union (NFU) has expressed caution and said “the temptation to liquidise land assets to help meet budget shortfalls could have a long-term effect on the local farming industry”.

A Freedom of Information request by County Coun Shuttleworth, who represents Weardale, revealed that in the last 12 months the council raised £754,090 in rental income from the farms.

Rents have remained the same for the past three years and range from £8,138 annually to just £44.87 for a six acre plot of land.

County Coun Shuttleworth said: “If they are so desperate for money they should be working with farmers to sell this land if possible.”

He added: “The council is potentially sitting on between £7m and £10m here. The bill for repairs and maintenance will be another financial burden.”

Stuart Timmiss, the council’s head of planning assets, said many of the farms had been in local authority ownership since the early 20th century as a result of the Government encouraging councils to provide farming opportunities for servicemen returning from the two world wars.

He said: “The council still has an important role in supporting the agricultural community in County Durham and these arrangements have continued with everyone’s agreement.

“The farms provide livelihoods for a number of families and they are their homes as well as their businesses, with many being long-term tenants.

“Most repairs and maintenance are carried out by the tenants themselves so there is very little ongoing cost to the council.

“The council is in the process of reviewing its portfolio, including farms. If this identifies an opportunity for existing tenants to buy their farm then as a council we may consider this option.”

Lucinda Douglas, a regional tenants adviser with the NFU, said: “County farms have traditionally provided an invaluable route into farming for new entrants trying to get a foot on the ladder.

“While it may be tempting to liquidise the council’s land assets to help ease current budget shortfalls, this could have a long term effect on the local farming industry. We hope to meet with the council to discuss the long term implications of such a move.”