The Cabinet Member for Finance, Performance and Core Services presented a report which provided an update on the Council’s Investment and Acquisition Strategy (IAS).
The Cabinet Member stressed that growth, innovation and transformation continued to be key to the future sustainability of the Borough and the delivery of the Council’s Medium Term Financial Strategy. The IAS was a fundamental part of that vision and despite the challenges that were being faced locally, nationally and globally, he was confident that the governance arrangements that underpinned the IAS would ensure that the Council was in a relatively strong position to deliver its aim of achieving an annual net income of circa £7m through the IAS.
Cabinet resolved to:
(i) Approve the updated Investment and Acquisition Strategy 2022-27 at Appendix A to the report;
(ii) Agree the removal of the Lease and Lease back asset class from the IAS and the removal of external, inflation linked financing arrangements for IAS schemes, as outlined in section 1.15 of this report;
(iii) Note that the IAS forecast for 2022/23 was a surplus of £6.17m, which was £0.76m below its target of £6.92m;
(iv) Note that the IAS forecast for 2022/23 to 2026/27 was £30.38m, which was £4.23m below its target of £34.61m;
(v) Note the governance and controls in place to manage the IAS;
(vi) Note that gross and net developments costs increased by £100m between Gateway 2 and Gateway 4 and the impact on the IAS viability;
(vii) Note the amendments that have been made to the IAS assumptions as outlined in paragraphs 3.2 - 3.6 of the report, and their implications;
(viii) Note the requirement for commercial loans and commercial income to support the IAS, especially over the short-term; and
(ix) Note the impact of leverage on the IAS, as outlined in section 7 of the report.