Agenda item - Establishing a Mechanism for Investing in our Growth Agenda

Report No: CAB/SE/17/020

Portfolio Holders: Ian Houlder and Alaric Pugh

Lead Officer: Rachael Mann

RESOLVED:

That:

(1) the strategic approach to investment planning (outlined in Report No: CAB/SE/17/020 and at Section 3) and the development of an overarching investment strategy for Council approval in due course, be supported and approved;

(2) the principle of the Cabinet’s role in the leadership and decision-making in relation to the investment fund (outlined in Report No: CAB/SE/17/020 and at Sections 4 and 5), be supported and approved;

(3) the transfer from the Strategic Priorities and Medium Term Financial Strategy Reserve, be noted, as detailed in paragraph 5.2 and 5.3 for the creation of a £1m revenue budget to support the capital investment fund; and

(4) it be noted that prior to the adoption of the overarching investment strategy, referred at (1) above, that the current constitutional decision mechanisms will continue to operate.

The Cabinet considered Report No: CAB/SE/17/020, which presented a proposed approach for establishing a mechanism for investing in the Council’s growth agenda.

The Council had previously committed (with Forest Heath District Council (FHDC)) in its Medium Term Financial Strategy 2017-2021, its intention to facilitate sustainable growth that benefited the communities of West Suffolk, including through investment, over the period of the strategy. This was in order to deliver the Council’s growth objectives as well as moving towards its goal of self-sufficiency.

As part of the Budget and Council Tax setting report presented to Council on 23 February 2017, a £20 million (plus £20m from FHDC) revolving capital investment fund was created as a pending item within the Council’s capital programme, funded from external borrowing. Report No: CAB/SE/17/020 proposed an approach to govern that fund and the creation of a £1 million (plus £1m from FHDC) revenue reserve budget to facilitate the fund’s next steps in delivering growth and investment opportunities in West Suffolk.

Councillor Alaric Pugh, Portfolio Holder for Planning and Growth drew relevant issues to the attention of Cabinet, including that the strategic approach to investment planning and the principle of the proposed governance for the revolving capital investment fund, as set out in Section 3 of the report, would enable the Council to be proactive as new investment and growth opportunities arise. The creation of the revenue reserve budget, which was proposed to be funded through a reserve transfer from the Strategic Priorities and Medium Term Financial Strategy Reserve utilising existing delegations of the Assistant Director for Resources and Performance, would be used to support delivery of the capital fund on such items set out in paragraph 5.2 of the report.

The Cabinet recognised the vision and forward thinking of the proposals, which fully supported the Council’s strategic priorities and themes of the Medium Term Financial Strategy 2017-2021. Subject to the relevant checks and balances as addressed in the report, the Cabinet agreed that the proposed governance would enable the Council to act more nimbly, swiftly and commercially to progress its growth agenda throughout the towns and rural areas of the Borough and West Suffolk.

Members also noted that further approval would be required on certain elements of the overall approach in relation to the development of an overarching investment strategy, which would be presented to Cabinet and Council in due course.