Agenda item

Cabinet

RECOMMENDED THAT COUNCIL

Approve:

(a)          The updated Investment Strategy attached at Appendix A to the report of the Interim Director of Finance which includes (i) a range of investment indicators to comply with the Statutory Guidance on Local Government Investments and (ii) the governance arrangements that enable the Council to seek approval for priority investments in a timely manner in response to market conditions.

(b)          The consequent changes to the Scheme of Delegation to enable the Head of Commercial Development and Investment to progress investment opportunities, including due diligence checks, and to authorise the S151 Officer to submit non-binding offers in line with market practice.

Council

AGREED

1.    The updated Investment Strategy attached at Appendix A to the report of the Interim Director of Finance (subject to the re-ordering of paragraphs 6.2 and 6.3), which includes (i) a range of investment indicators to comply with the Statutory Guidance on Local Government Investments and (ii) the governance arrangements that enable the Council to seek approval for priority investments in a timely manner in response to market conditions.

2.    The consequent changes to the Scheme of Delegation to enable the Head of Commercial Development and Investment to progress investment opportunities, including due diligence checks, and to authorise the S151 Officer to submit non-binding offers in line with market practice.

Councillor John Williams, the Lead Cabinet Member for Finance, proposed the recommendation of the Cabinet, at its meeting held on 2 October 2019, regarding the adoption of the Investment Strategy and consequent changes to the Scheme of Delegation.  In moving the motion, Councillor John Williams thanked the officers involved in developing the updated strategy, noting that it had been subject to review by the Chartered Institute for Public Finance and Accountancy and was now considered to be an exemplar document.

Councillor Bridget Smith seconded the motion.

During discussion:

·         Councillor Heather Williams indicated that she was not comfortable with the increased level of investment provided for in the strategy and questioned whether the Investment Strategy would continue to be unaffected by any interventions by the Ministry of Housing, Communities and Local Government and HM Treasury relating to the scale of borrowing by local authorities for commercial purposes. 

·         Councillor Hazel Smith spoke in support of increasing investment as envisaged in the strategy, noting that local authorities needed to find new ways to deliver financial returns. She also commented that, in her opinion, the order of paragraphs 6.2 and 6.3 should be reversed. 

·         Councillor Peter Topping referred to the amended governance arrangements and commended Councillor Heather Williams who had expressed caution about the arrangements for scrutinising and approving investments when the previous strategy had been submitted.

·         Councillor Grenville Chamberlain reiterated the need for proper scrutiny of investment proposals, expressing concern that the Council would be locked into long term investments and that the risks needed to be properly understood.

·         Councillor Bridget Smith emphasised that the strategy had been through robust review by CIPFA and commented that the Council would have a broad portfolio, with investments spread to minimise risks. Given the challenges facing the Council, including uncertainty around funding from central government, the Council needed to make investments to ensure it had capacity to deliver services.

In summing up, Councillor John Williams responded to Members’ comments, particularly referring to the investment criteria matrix to be used to evaluate investment properties and the flowchart setting out the governance arrangements. 

At the request of the Chairman, Councillor John Williams confirmed that he was content to accept the proposal of Councillor Hazel Smith to re-order paragraphs 6.2 and 6.3 within the strategy.

Upon the motion being put, a vote was taken and were cast as follows:

In favour (26):

Councillors Henry Batchelor, John Batchelor, Anna Bradnam, Dr. Martin Cahn, Dr. Claire Daunton, Dr. Douglas de Lacey, Clare Delderfield, Neil Gough, Jose Hales, Bill Handley, Geoff Harvey, Dr. Tumi Hawkins, Pippa Heylings, Steve Hunt, Alex Malyon, Peter McDonald, Brian Milnes, Dawn Percival, Judith Rippeth, Nick Sample, Bridget Smith, Hazel Smith, Dr. Ian Sollom, Dr. Aidan Van de Weyer, John Williams and Eileen Wilson.

Against (10):

Councillors Ruth Betson, Tom Bygott, Grenville Chamberlain, Graham Cone, Sue Ellington, Mark Howell, Deborah Roberts, Peter Topping, Bunty Waters and Heather Williams.

Abstain (1):

Councillor Nick Wright

Council

RESOLVED:

1.    To approve, subject to the re-ordering of paragraphs 6.2 and 6.3,  the updated Investment Strategy attached at Appendix A to the report of the Interim Director of Finance, which includes:

(a)  a range of investment indicators to comply with the Statutory Guidance on Local Government Investments; and

(b)  the governance arrangements that enable the Council to seek approval for priority investments in a timely manner in response to market conditions.

2.    To approve the consequent changes to the Scheme of Delegation to enable the Head of Commercial Development and Investment to progress investment opportunities, including due diligence checks, and to authorise the S151 Officer to submit non-binding offers in line with market practice.