Tory plans to sell every county council-owned building in Oxfordshire to the private sector have been ruled out.

Lib Dems, Greens and Labour county councillors yesterday voted against spending £25,000 on a consultants' feasibility study of the idea, known as 'priming'.

It would mean the council selling its buildings, but continuing to be responsible for running the services provided there.

Conservative Roy Tudor-Hughes (Con) told the strategy and resources committee the county's property could be worth up to £850m.

With that kind of money the financially-struggling council could pay off its £150m debt, fund its £50m building maintenance, and increase its spending on services by between £10m and £30m a year, he said.

Lib Dem group leader Dermot Roaf said a sell-off would provide short-term gain but the county might have to pay heavily in the future.

The buildings would have to be leased back from the buyers and the council would have to pay both rent and running costs.

At the end of the agreed lease period, perhaps 20 years, the council would either have to buy the buildings back at full market price, re-negotiate the lease, or let the buildings go.

Mr Roaf said: "I know that the county council is in financial difficulties but, in my opinion, selling off buildings such as schools, libraries and fire stations to fund current running costs is simply clutching at foolish financial straws."

He warned that an enormous capital receipt might result in a smaller Government grant for the county.

The county council is carrying out a property review and the results are due to be reported in October.

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