Agenda item

To provide Council with an update on the progress of the Commercial & Investment Strategy including formal approval of the Strategy, and to agree next steps in formulating a plan for implementation to include: governance, funding, investment criteria and prospective projects.

Members considered the Commercial and Investment Strategy report presented by Councillor Boden.

Members asked questions, made comments and received responses as follows:

·         Councillor Sutton felt this policy to be the reincarnation of a policy from a previous administration in 2016/17 and not a new one as suggested. Councillor Boden agreed it is not the first time we have talked about having a commercial and investment strategy but the difference is that this time we are trying to create one.

·         Councillor Yeulett asked for confirmation that that there will be further opportunity to challenge and discuss this strategy. He added that mention is made within the report of housing provision and as affordable housing is a national and local problem, will the strategy be proactive in helping and encouraging home ownership for the less well-off and younger people. Councillor Boden agreed these were valid points and it is correct that we look at how hard working families can get on the housing ladder; however the reasons for housing shortages are different across the country. The Mayor of the Combined Authority has plans for homes up to £100k which should play a significant part in helping people get on the housing ladder but in this policy we need to bear in mind that we have wider objectives. Councillor Boden confirmed this policy is subject to change and amendment.

·         Councillor Hay said she felt the policy to be long overdue but better late than never. The policy is about creating a return to this Council so that we can keep council tax down and deliver the services we need; this is the way forward. 

·         Councillor Tanfield said that she is pleased this is now coming to fruition but her concern is that we have the skill required to run this commercial side. The process of raising investment is very complex and it is important to get the governance arrangements and structure right, however it is very positive. Councillor Boden responded that Councillor Tanfield’s comments were correct; given the spirit of the ambition, the officers themselves recognise they do not possess the entire skill set required and a level of buy-in will be required on special areas of investment.

·         Councillor Booth said that his concern is that there is a lot more that needs to be determined with this policy. He is not sure that the recommendation quite says what Councillor Boden says it does. It says we will approve the draft policy but then officers will formulate the proposals. Proposals can sit underneath a policy but is it therefore that this policy will come back after those proposals have been arranged? This needs to be clarified. Councillor Booth also pointed out areas within the report which he feels need updating, for example p.124, section 3.4 of the agenda pack incorrectly states that the Council’s housing stock was transferred in 2017. He would also ask that the board oversee the arrangements; currently under these proposals it says there will be a minimum of two members on the board and three officers. The board is to direct strategy of the commercial investment and officers will provide the technical support and advice. However at face value the officers will have the ability to out-vote the members, which is a situation that should be avoided. Councillor Boden agreed there are some contradictions and errors within the report which need to be corrected. He added that there are governance issues to do with the relationship between the board which will be sorted.  However, he is grateful for the general support given by members; it will be a co-operative process and the returns for our council are significant, and the impact it can have on protecting services and allowing us to keep council tax down will be very significant if we get it right. He hopes that there will be more detail available when Council meet again in January.

·         Councillor Count asked if it would be advisable to add a recommendation that non-material amendments go to the Section 151 Officer in consultation with the Leader. Councillor Boden said this suggestion could be adopted. Councillor Booth said that if the policy is going to be looked at by Council anyway, he did not feel we need to delegate to other officers. He pointed out some further errors within the report. Councillor Booth said that in agreeing to Councillor Count’s suggestion, he assumed he was agreeing only the correction of small errors.  Matters of substance will need to be brought back to the Council.    

·         Councillor Hay said we do have a commercial investment committee at County; investment opportunities were slow at the beginning but now things are moving on at pace. She asked for assurance that we would speak to County colleagues so that we were not stepping on their feet; also it would be good to learn from their experience of what works and what doesn’t. Councillor Boden thanked Councillor Hay and confirmed that discussions are already in place and both authorities are working together.

·         Councillor Yeulett asked Councillor Boden if we are in touch with councils similar to ourselves in respect of the affordability problems for housing. Councillor Boden said we are not in the same position as the vast majority of other district councils because of the existence of the Combined Authority. The sheer size of the funds available within the CA to assist with affordable housing makes a massive difference and he is hopeful that further funds will come from national government.

·         Councillor Mrs Mayor pointed out that there will be a Members Seminar on 28^th November in which there will be a discussion on the Commercial and Investment Strategy. She also reminded members that, further to the recommendation stating that the report will be taken to Cabinet and Council in December, this will now be in January.

Proposed by Councillor Boden, seconded by Councillor Mrs Laws and decided that the Council AGREES to:

·         Formally approve the draft Commercial and Investment Strategy.

·         Authorise CMT to take all required actions to formulate proposals for consideration by Cabinet and Council in January 2020 which facilitate the financial and governance arrangements necessary to give effect to the Strategy and the establishment of a Local Authority Trading Company.

·         Request and authorise Officers to proceed to obtain outline planning permission for the residential development of three Council owned sites (two in South Wisbech and one in Coates) in order to make an application to the Cambridgeshire and Peterborough Combined Authority for financial support in the provision of affordable housing. It is also worth noting the tight timescales by which the construction of such affordable housing would need to be achieved in order to qualify for such financial support.

Further to the recommendation of Councillor Count, Council also AGREED that non-material amendments be approved by the S151 Officer in consultation with the Leader. 

(Councillor Tanfield left the Council Chamber at 5.39pm)