Agenda and minutes

Apologies were received from Councillor Matt Furniss.

In accordance with the revised local Code of Conduct, a councillor is required to disclose at the meeting any Disclosable Pecuniary Interest (DPI) that they may have in respect of any matter for consideration on this agenda.  Any councillor with a DPI must not participate in any discussion or vote regarding that matter and they must withdraw from the meeting immediately before consideration of the matter.

If that DPI has not been registered, the councillor must notify the Monitoring Officer of the details of the DPI within 28 days of the date of the meeting.

There were no disclosures of pecuniary interest.

To confirm the minutes of the Executive Advisory Board meeting held on 23 February 2017

The minutes of the meeting held on 23 February 2017 were confirmed as a true record and signed by the Chairman.

The reason for considering Item 5 in private is the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972, which is information relating to the financial or business affairs of any particular person (including the authority holding that information).

The Board is therefore asked to consider passing the following resolution:

         "That under Section 100A(4) of the Local Government Act 1972 (as amended) and Regulation 5 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012, the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Act.”

The Board agreed to the exclusion of press and public.

RESOLVED:  That, under Section 100A(4) of the Local Government Act 1972, the public and press be excluded from the meeting for the following item of business on the grounds that it involved the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the 1972 Act.

The Board received a presentation from the Head of Financial Services, to illustrate some of the options open to this Council in respect of shared and traded services, and income generation. As part of the Corporate Plan for 2015-20, the Head of Financial Services had been tasked with increasing income from commercial services, and developing business cases for new traded services to increase commercial income. Potential methods for achieving this were outlined in the Medium Term Financial Strategy, and replicated in the Channels of Change Transformation Programme.

The Head of Financial Services explained the structure of Guildford Borough Council Holdings Ltd, which was incorporated in 2016. The company had unrestricted objectives, but its only activity to date had been to issue shares on to North Downs Housing Ltd (NDH), and there were no plans for it to trade in its own right. The Director of Community Services informed the Board that NDH started trading in March 2017, and had already acquired six ‘entry level’ properties.  Subject to approval from this Council, NDH would be looking to increase its portfolio over the next four years to 200 properties, with an expansion budget of £22 million, split 60%/40% loan to equity investment. The Business Plan for NDH is expected to go to executive over the summer for approval.  The majority of properties purchased to date had been owner-occupied, but changes in government legislation meant that the financial environment for small landlords was less attractive, so NDH were also looking at tenanted properties where landlords were planning to sell. 

The board discussed options to include in the business plan for developing NDH such as moving into developing their own housing on various brownfield sites and a potential role for NDH in the  Slyfield Area Regeneration Project (SARP). The board noted that NDH did not seek to unnecessarily compete with the market, but to fill a perceived gap in the current market. The aim was to have a balanced property portfolio, and to generate income. The Board was reminded that NDH was an independent company, with independent judgement, particularly in terms of affordability. The Director of Community Services also advised the Board that the Government had a focus on home ownership that precluded local authorities from circumventing Right to Buy policies, and it had taken powers to prevent councils letting social housing via their companies. The Directors of NDH were keen to focus on its social purpose, and considered criteria such as access to transport when planning additions to its portfolio. Whether it would be appropriate to maintain the loan to equity investment ratio after the first four years of trading would be a decision for Directors, but the company would need to match the landscape of the market at the time, in order to maintain its economic viability.

The Head of Financial Services gave the Board some examples of shared and traded services which other councils had successfully implemented, including: housing development/management; energy companies; facilities management; fleet and construction services; property consultancy;  ...  view the full minutes text for item S5

The report was noted by the Board.

To consider and approve the EAB’s draft work programme.  Details of future Executive decisions are included.  

The work programme was noted by the Board.