Agenda item

To receive the annual governance update regarding Stone Circle.

Perry Holmes, Director Legal and Governance, presented the Stone Circle Annual Governance update.

The officer explained that this report was about the governance framework around Stone Circle. It was not about the performance of the companies, although some details regarding performance had been provided for information. The governance framework involved Cabinet, the Cabinet Shareholder Group, the Audit and Governance Committee, and now Scrutiny had got involved as well. The companies had Board meetings, and a Wiltshire Council director was on the Board. The council Business Plan encouraged the company to own more houses which supported the Business Plan objective to

grow the economy by facilitating the provision of affordable homes and developing new housing on public land.

Members were pleased to see the governance framework that was in place and the involvement of scrutiny. It was noted that the investment of £42 million was becoming significant and Members queried what was being done to protect that investment for the benefit of Wiltshire.

The officer explained that by adopting a best practise governance framework as described in the report, this was the best way to protect the investment. There was regular contact with the company’s directors, quarterly shareholder group meetings and their aim was to look at what the council was getting for the investment and whether it was safe. The portfolio included 168 houses, which were rented, and the rent was sufficient to cover the debt. The model was similar to the Housing Revenue Account (HRA). There was more risk in building houses to sell, however there was a housing need, so there was a market. The company could also sell the houses back to the rental company to rent out.

Members questioned whether there was any customer/tenant involvement or engagement, similar to that within council housing stock. The officer stated that the company had a significant interest in managing that relationship. The council had a very skilled set of colleagues who managed the relationship with HRA tenants. Stone Circle had some learning to do in this area and this was encouraged.

Members queried whether the Corporate Director Resources leaving Wiltshire Council would affect the governance arrangements for the companies and who would take on the lead role. The officer explained that the Chief Executive would seek to appoint an interim Corporate Director Resources, however for now, the Director of Finance and Procurement could act up in that regard. Also, the Director Adult Social Care was on the Board. Members expressed concern for the workload of the Director of Finance and Procurement.

The Chairman stated that there were 2 proposals within the report, these were that the Audit and Governance Committee:

1.    Note the updates to governance arrangements for the Stone Circle companies since the previous report to the committee in September 2023.

2.    To comment and make suggestions on the future governance framework for the Stone Circle companies as they see fit.

The Committee did not have any formal comments or suggestions and therefore, on the proposal of the Chairman, seconded by Cllr Gavin Grant, it was,

Resolved:

To note the updates to governance arrangements for the Stone Circle companies since the previous report to the committee in September 2023.