Decision Maker: Cabinet
Decision status: For Determination
Is Key decision?: Yes
Is subject to call in?: No
The subject of the decision:
It was proposed that the Commercial Investment Strategy was suspended at the current time due to the increase in Publics Works Loan Board interest rates on borrowing in October 2019 resulting in the income to be generated from commercial investments being marginal; consultation paper from HM Treasury on ‘Public Works Loan Board: future lending terms’ in March 2020 where it was clearly implied the Treasury would no longer allow local authorities to borrow money from the Public Works Loan Board to purchase commercial property if the aim was solely to generate an income stream and current Covid-19 environment where receipt of rental income was uncertain.
Alternative options considered:
The reason for the decision:
Cabinet considered that it was not financial viable to continue with the Commercial Investment Strategy at this current time.
That Cabinet approves and recommends to Council that:
(1) the Commercial Investment strategy is suspended; and
(2) £30m commercial investment property portfolio is removed from the Capital programme and the Authorised Borrowing Limit and Prudential Indicators are revised at paragraph 4.1 of the report.
Reason Key: Affects more than 2 wards;
Wards Affected: All Wards;
Other reasons / organisations consulted
Contact: Louise Branford-White, Director of Finance (s151 Officer) Email: firstname.lastname@example.org.
Report author: Louise Branford-White
Publication date: 11/09/2020
Date of decision: 08/09/2020
Decided at meeting: 08/09/2020 - Cabinet