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A bombshell cabinet report has ripped the lid off a massive governance failure at Peterborough City Council, revealing the 2020 transfer of the John Mansfield Centre, a college building valued at £4.6 million, to a charity for the token sum of just £1. The scandal has since deepened with Cambridgeshire Police launching a criminal investigation, which has already led to the arrests of three individuals on suspicion of misconduct in public office.
The John Mansfield Centre, which houses City College Peterborough and provides vital adult education services, was disposed of to the City College Peterborough Foundation in February 2020. This shocking sale, which has cost the city millions, has ignited urgent questions over legal compliance and oversight within the local authority.
The Unlawful £1 Deal and Missing Consent
The damning findings by the council’s statutory officers confirmed the property transfer was not only made outside of delegated authority but constituted an unlawful act. Critically, the council breached its statutory duty to secure the best possible consideration for the asset.
The investigation found that the council officer who signed off on the freehold disposal mistakenly relied on powers applicable only to leases. The report explicitly stated the decision was taken by an officer who was not explicitly authorised to do so. Compounding the illegality, councils are only permitted to sell land at an undervaluation of £2 million or less without requiring the Secretary of State's consent. With the John Mansfield Centre carrying a book value of £4.6 million, central government permission was legally required, yet no evidence suggests this was ever sought. The statutory officers were unequivocal in their findings: "The decision... was made outside of delegated powers and in breach of the duty to obtain best consideration. It was, therefore, unlawful."
Furthermore, the delegated authority form used to approve the transfer was deemed "fundamentally flawed," including incorrect claims that the foundation had been established specifically to manage the college building.
Millions Wasted in Unauthorised Rent Payments
The financial fallout did not conclude with the £1 sale. Following the transfer, Peterborough City Council astonishingly began paying rent to the new foundation for the use of the very same building. This occurred despite City College Peterborough still operating as a council department. Monthly rent payments started at £17,010 and escalated to £29,010 by February 2021, eventually reaching an approximate total of £790,000.
The audit report confirmed that there is no evidence of a written lease or rental agreement to justify these payments, rendering the over £790,000 in rent—like the sale itself—unlawful. On top of the rent, the council made further unauthorised payments, including around £150,000 related to the sale contract and an additional £142,000 for maintenance work. The total figure for these unlawful payments has reached approximately £1.082 million as internal auditors continue to review the complete extent of the financial damage.
Criminal Investigation and Council Response
The severity of the failures prompted a police investigation. In May 2025, Cambridgeshire Police arrested three people in connection with the deal: a woman in her sixties, a man in his seventies, and a man in his eighties. While all three were initially released on bail, they have since been released under investigation as the probe continues.
Speaking on the scandal, Mohammed Jamil, the council's Labour cabinet member for finance, issued a statement affirming the authority's commitment to accountability. "The publication of this report is proof that where unlawful acts are identified as having taken place, the council's statutory officers will not shy away from their duty to report that wrongdoing, and we fully support that approach."
The council is now pursuing urgent legal advice to determine if it can reclaim the property or pursue damages, though officials have conceded they do not foresee being able to repurchase the building. Meanwhile, the recipient, City College Peterborough Foundation, is struggling financially after the council ceased paying rent for the 2023-2024 period, leaving an unpaid sum of £560,560. Tasha Dalton, Principal at City College Peterborough, stated that their priority remains the college learners and staff, confirming the college is aware the report relates to a "historical matter."
Similar Council Asset Disposal Controversies
The Peterborough scandal echoes a concerning trend of controversial asset disposals by local authorities under financial pressure across the UK. In August 2024, East Lindsey District Council sold a crazy golf site in Skegness for £1, despite it being valued at £280,000, arguing the nominal fee would allow developers to start work quickly. The ongoing fallout from the effective bankruptcy of Birmingham City Council has seen it undertake a massive asset fire sale, including land and community centres, with some major sales, such as Bordesley Park, raising questions over securing the best possible price. These examples highlight the systemic vulnerability of public assets to mismanagement, lack of oversight, and the imperative for rigorous governance checks during property divestments.
