Agenda item

The Director for Corporate Services to submit a report to raise awareness and seek support from members as the Council faces the current challenging financial situation through creating and delivering a commercial approach to maximising income generation.

The Director for Corporate Services submitted a report in the context of the Council’s Medium Term Financial Strategy, and challenging financial situation, to set out and support the establishment of a Commercial Strategy; pursuing a more commercial approach which maximises income, increases self-sufficiency and enables funding for services to be protected.

The Chair proposed a change in recommendation 2.1 to recommend the Commercial Strategy to Full Council for adoption and explained that the paper is about giving Officers the authority to further pursue a Commercial Strategy which is needed to supplement income. He explained that it would be challenging for Officers to take a commercial approach and make speedy decisions with minimal risk.

The Director for Corporate Services explained that not everything will be about new projects and activities as some of it will be about a change in culture or approach to some of the activities and services that is currently delivered in order to be more efficient and maximise income.

It was said that there is currently interim arrangements in place in terms of the Corporate Improvement Team and this will need to be reviewed. A proposal will be put forward to Members in order to ensure the right team is in place to support the council as it moves forward with this agenda.

It was also said that in terms of finances at the present time there are sufficient budgets to move this approach forward however, this will be reconsidered when the Corporate Improvement Teams resources have been reviewed. There is almost certainly going to be a need to financially support some of the projects that will flow from this approach in terms of resourcing some projects but also a number may require capital investment which with the Council’s limited capital receipts may involve prudential borrowing to support.

A Member highlighted concerns with the report and explained that most authorities now have unitary arrangements or have proposals in place to become unitary. The savings to become unitary have been assessed and are thought to be large, although there are no plans in place to become unitary in this area it could put pressures on funding and business rates. This would make it difficult for districts to survive and explained that the council should be cautious about the future and the risks associated with gambling with large sums of money. It was stated that the business case must be strong and with low risk.

Another Member explained that he used to believe in unitary, however since Melton have acquired the King Edward VII sports village it has been improved and increased the people using the site, this shows that if the focus is smaller the services provided can be more agile.

The Chief Executive reiterated the point that the strategy was about creating a more commercial agenda and giving officers permission to explore the options further. He explained that should the Strategy be approved by Full Council that any subsequent proposals will be considered in detail by members and will be supported by a detailed business case. 

The recommendations were moved by Councillor Orson and Councillor de Burle seconded.

All Members were unanimously in favour.

RESOLVED that:

1) the Commercial strategy at Appendix A be recommended to Full Council for adoption.

2) the key areas of focus and proposed initial actions to support implementation of the strategy be noted.