Agenda item

To provide an update to the Overview & Scrutiny Panel of the work of the Investment Board from April 2020 to March 2021.

Councillor Mason welcomed Councillor Boden to the meeting to present the first Investment Board Annual Report 

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

1.    Councillor Booth recognised that there has not been the opportunity for the Investment Board to get fully up and running given the constraints of COVID-19 and suggested that we not wait for an update in a year’s time.  He noted that one of the aims of the Board is to invest in residential development and he asked what the approach is going to be regarding delivery of social housing. Councillor Boden said it is the Board’s intention to be commercial and will be unlikely to pursue social housing unless legislation dictates it; the objective of Fenland Future Limited is to operate as any commercial developer in order to achieve a return.

2.    Councillor Yeulett said the report referred to the Investment Board being created to be more ‘fleet of foot’ and asked what that meant. Councillor Boden said it refers to the need to move quickly i.e. with a speed greater than usual at local government level, to compete for investment opportunities with private businesses.

3.    Councillor Miscandlon said whilst it is desirable to keep investment within the geographical area would the Board consider opportunities outside of Fenland. Councillor Boden said if the opportunity arose, it would not be ruled out but most of our real opportunities will lie within or close to Fenland.

4.    Councillor Miscandlon said that Fenland owns some land, some of which is up for sale, therefore would it be in our interest to apply for planning permission to increase its intrinsic value, so that when sold we profit further. He also asked if there was a possibility of building our own houses although, bearing in mind that we transferred our housing stock, would it be the intention to go back into social housing and how would this affect our stock partner Clarion? Councillor Boden said in respect of our smaller plots of land, although it would not be economically viable for us to build on these ourselves, it would be prudent to at least apply outline planning permission and or have a clawback provision within the sale so that if speculative development was achieved then we would get some recompense for that. For larger areas of land, we have to consider that we do not have the expertise to develop ourselves but look to work in partnership with a developer to build and cooperate with us. In any development we undertake there will be some obligation to have affordable housing, it may not be in the form of social housing, and it is not our intention to build social housing as there will not be the return, but it not our intention to reintroduce the social housing stock.

5.    Councillor Mason said members would be interested to know what assets are placed on loan security or earmarked for that purpose. Councillor Boden said no further borrowing has taken place and therefore no assets are being used as security but if we were to borrow for future schemes this would be from internal borrowing or through the public works loan board.

6.    Councillor Booth asked if we have been using clawback clauses and if we have been doing that on all the sites we have been selling to date as standard practice. Councillor Boden said it is standard practice but not on every site as that is dependent on the nature of the site itself.

7.    Councillor Mason thanked Councillor Boden for his report and said given that the Board is newly formed, he looks forward to a larger report next year.

The Overview and Scrutiny Panel noted the Annual Report of the Investment Board.