Decision details

The Cabinet approves the Commercial Investment Strategy as attached to Appendix A of the Officer’s report and the ‘as is’ model of governance arrangements.

The Council faces considerable financial challenges which need to be addressed to achieve the Council’s ambition to reduce reliance on Central Government funding. Income generation is one business activity which will help address this funding gap.

The governance structure for the Commercial Investment Strategy needs to allow the Council to trade on a commercial basis and also recognise the statutory and political boundaries that must be observed. The two options available to the Council:

•  Option 1: ‘As is’ position, expanded to include wider Commercial Investment Strategy activity.

• Option 2: The Council could establish a Local Authority Trading Company to deliver the Commercial Investment Strategy.

Current resources for managing the Council’s existing estates are likely to be insufficient to accommodate the additional work required to identify investment opportunities and manage a wider portfolio. The Commercial Investment Strategy Business Plan will set out where additional resources and support need to be brought in to guide investment decisions and monitor and manage performance.