Agenda item

      Report of the Chief Executive

Cllr Pauline Church, Cabinet Member for Finance, Procurement and Commercial Investment introduced the report which sought consideration of the business plans proposed by the Stone Circle Companies as required under reserved matter 26 of the shareholder agreement as well as to agree that a review of governance is undertaken to support the growth of the companies and protect the Council’s interests as shareholder.

Cllr Pip Ridout, Chair of the Financial Planning Task Group confirmed that she had received a briefing on 27 January 2021 and supported the proposals.

Cllr Church indicated that a written response would be provided to questions received from Cllr Allison Bucknell about Stoneover Lane in Marlborough and the purchase of MOD housing in Lyneham.

Members also commented on the potential for Priestley Grove development plan being resolved through a governance review; and climate emergency measures being included in the Stone Circle business plans.

Resolved:

1. Agree the Stone Circle housing company business plan 2021/22 but serve notice on the company that the increased budget for individual acquisitions is not agreed and will be subject to a governance review and new business plan.

2. Agree the Stone Circle development company business plan 2021/22

3. Agree the Stone Circle holding company business plan 2021/22.

4. Subject to agreeing the business plans to allocate the £34.40m loan finance required for the Stone Circle housing company business plan and £2.657m for the Stone Circle development company business plan in the 2021/22 capital programme.

5. Delegate authority to agree the project plan for each development proposed by Stone Circle Development Company Limited to the Interim Corporate Director Resources (S.151 Officer) in consultation with the Cabinet Member for Finance, Procurement and Commercial Investment.

6. Note the Stone Circle companies intention to serve notice on the Council to end the accountancy service provided via the resourcing contract.

7. Note that Hazlewoods remain the auditors of the companies as the first audit is yet to take place.

8. Agree that a review of the governance arrangements for the Stone Circle Companies is undertaken by the Interim Corporate Director of Resources (S.151 Officer) and the Director of Legal and Governance / Monitoring Officer and that a report is brought back to cabinet for consideration within six months.

9. Delegate authority to the Interim Corporate Director of Resources (S.151 Officer) to conclude detailed contract arrangements and serving of required notices under the shareholder agreement with and on the Stone Circle Companies including changes to the resourcing contract

Reason for decision:

The shareholder agreement between the Council and the companies requires

the companies to present their proposed business plans to the Council at least three months before the start of the financial year in question.

This report is the outcome of that proposal and the consideration of the

Cabinet for the forthcoming financial year, which includes that a review of the

governance of the Stone Circle Companies is necessary to ensure that they

support the growth of the companies and protect the interests of the Council as shareholder

Note:

Councillors Richard Clewer, Bridget Wayman and Ian Thorn declared disclosable pecuniary interests and left the meeting for this item.