Issue - meetings

Deputy Leader and Portfolio Holder for Finance and Governance.

RESOLVED:

That the Capital Investment Strategy be adopted as the framework for the Capital Programme elements of service and financial planning for 2022/23 onwards.

The Deputy Leader and Executive Member for Finance and Governance, Councillor Schofield, introduced the Council’s Capital Investment Strategy 2022/23. The Strategy helped ensure that the Council’s capital decisions took account of stewardship, value for money, prudence, sustainability and affordability.

Councillor Schofield explained that the Strategy provided information about the Council’s assets, how they were used and how they performed. It also included information about assets that the Council planned to invest in. Following approval of the Strategy, future capital investment plans would be confirmed as part of the service and financial planning process.

Councillor Harrison, Chairman of the Overview and Scrutiny Committee, explained that the Committee considered the Strategy at its meeting on 15 July 2021. The Committee focused its questions Horley Business Park, Council assets, commercial developments and the Commercial Strategy Part 2. The Committee recognised that the Strategy was a living document and looked forward to receiving it alongside the budget proposals later in the year.

RESOLVED:

That the Capital Investment Strategy be adopted as the framework for the Capital Programme elements of service and financial planning for 2022/23 onwards.

To receive a report on the Capital Investment Strategy 2022/23.

The Committee received a report and briefing on the Capital Investment Strategy 2022/23 from Councillor Schofield, Deputy Leader and Executive Member for Finance and Governance.

It reflected further development work in this area over the past year and set out the approach to capital investment plans and priorities and covered the assets that the Council owns and their performance. It confirmed that new capital investment decisions took account of stewardship, value for money, prudence, sustainability, affordability, and risks.

Horley Business Park – Members asked about the Horley Business Park project and how this was captured in this Strategy. The Interim Head of Finance, Pat Main, confirmed that the loan to purchase the site was reported in the Council’s annual statement of accounts with Greensands Holdings Limited owning the land assets.

Council assets – Members noted that Table 3 in the report set out the Council assets and gross yields for 2020/21. This included Crown House, Redhill and Regent House, Redhill. Table 2 included significant assets such as Marketfield Way. Members asked when these properties would be revalued as they had not been valued since 1 March 2020. It was confirmed that updated property valuations would be prepared for the final accounts for 2020/21. Members asked about the Council’s investment in Pathway for Care. It was confirmed that this comprised of preference shares and were therefore excluded from the physical assets list. They also asked for a list of other properties the Council owned but were not listed in Table 2. It was confirmed that the Strategy included a link to where they were reported on the Council’s website as part of the Local Government Transparency Code.

Commercial activity action plan and annual outturn report – Members asked for more information about these reports (refer to pages 176 and 181). A written response would be provided.

Commercial developments and investment – funds have previously been allocated in the Capital Programme for commercial development and commercial investment, but these investments had not yet been made (as set out in Table 6). Members asked for confirmation whether these were commitments to a general investment intention rather than a specific project? Councillor Schofield explained that, as the commercial strategy Part 2 takes form, this would confirm the likely timeline for when these investments would be made. The response to COVID-19 had delayed work on the Strategy but it was now resuming.

Commercial governance framework – Members asked if there were plans to update the commercial governance framework 2019. It was confirmed that this framework was still valid and provided a logical progression for making commercial decisions. It was not out of date although there were other mechanisms that could be used in conjunction with this framework.

RESOLVED that the Committee:

(i)             Noted the report and raised comments for consideration by Executive that are set out in the Minutes.