Agenda item

The Overview and Scrutiny Panel (Performance & Growth) (Environment, Customers & Partnerships) is invited to comment on the revised strategy document appended to the report for consideration by Cabinet when approving the strategy.

Executive Councillor: Brett Mickelburgh

By means of a report by the Corporate Director for Place (a copy of which was appended in the Minute Book), The Commercial Investment Strategy Report was presented to the Panel.

Agreement with the principle that all decisions taken under the Strategy should lead to revenue generation was expressed; however, concerns were raised about the approach to risk. The view being that all investments should comply with the Council’s agreed level of risk. It was also suggested that an appropriate forum should be identified for reporting on the activities of the governance arrangements. However, it is recognised that monitoring extends wider than the Strategy and is constrained by the terms of the Constitution. The Panel heard that the risk level should be taken into account in any business cases that are brought forward but a previous discussion was referenced in which the Council were willing to accept a higher degree of risk relative to the returns that would be generated and these are balanced against economical and social value in the local area. The Officer agreed that a review of the strategy would be sensible and that building in a timescale could be a good idea for this.

The Chair has commented that the yield appears to be optimistic and that there is significant reliance on the S151 Officer.

It was challenged whether the Council should be making investments given that Local Government Reorganisation (LGR) will be implemented in a short period of time. It was suggested the Council should have an exit strategy that includes disposing of assets and any money devoted to Huntingdonshire. The Council’s approach to holding Community Infrastructure Levy funding was also questioned. It was pointed out to the Panel that there will not necessarily be further investments, but the Strategy has been updated in case it is needed. The business case for any investments will include consideration of the implications of LGR. The Officers advised they share the Member’s concern in this matter and want to do their best for the communities they represent and this comes into the decisions that are being made. It was reiterated that the Council wish to ensure the new Organisation are financially viable as the alternative would fail residents of Huntingdonshire.

Concern was expressed that the Strategy will not achieve the objective of generating revenue as effectively as the previous iteration. Assurance was sought that the Strategy will not be used for Invest-to-save purposes as this does not accord with the Strategy’s revenue generating objective. The Panel heard that the prime goal of the strategy is income generation and that there are benefits to having a spread portfolio rather than all investments being tied solely into the Local area. It was advised that investing outside of the area still means returns will be spent on the local area and services.

It was suggested that the contents of the Strategy should be made clearer and given greater emphasis. Another issue identified was the delegated authority  and the process of delegation. The Panel heard that it was reflecting the existing constitution.

Following the discussion, it was

RESOLVED

that the comments of the Overview and Scrutiny Panel be passed to Cabinet for their consideration when making a decision upon the recommendations within the report.