To receive questions in accordance with the provisions of Council Procedure Rules 12.2 and 12.4 which require a Member to give at least 3 working days’ notice, in writing, of the question to the Chief Executive.
Minutes:
The Mayor advised that one question had been received by the Chief Executive in accordance with Council Procedure Rules. The question was from Councillor Dant to Councillor Whitehead, the portfolio holder for Finance and Resources, as follows:
In the light of the November statement by the Chancellor of the Exchequer, will the Portfolio Holder for Finance suspend the current Property Investment Strategy and revise the Capital Investment Strategy to remove investment in commercial property for yield?
Councillor Whitehead responded:
The City Council is focussed on a short, mid and long term approach aiming to:
- Bring forward initiatives and activities that deliver social, economic and environmental benefits for Lancaster City Council’s community
- Ensure we have a secure, short, mid and long term strategy for funding valuable and valued council services and amenities for that community
- Reflect an appropriate balance of risk and opportunity, given the national pressures on local finances and our community, to ensure we have a diversified income, investment and funding approach which is fit for a context of fluctuating, diminishing central government allocations.
Regarding the Capital Programme and broader investment strategy, it is vital that we continue agreed strategic activities to achieve the three outcomes above. Otherwise we are unlikely to have the stable income necessary to deliver the range of quality local services and amenities that make Lancaster City Council’s area a great place to live. The Capital Programme also contains a range of works which are vital to addressing deep rooted challenges in local housing and communities, futureproofing and addressing blight in the local economy and delivering our climate change commitments. These plans will, of course, be iterative, with officers and portfolio holders working together to align investment and action with the Cabinet and Council’s identified priorities, and accessing opportunities presented by partners. The most recent work in moving towards an Outcomes-based resourcing approach (OBR), and ongoing work to translate the SDGs into a local decision tool is also enabling us to align this work with our 2020 thematic priorities of the climate emergency, community wealth building and community engagement.
On the specific point of PWLB borrowing, we have established three urgent work items regarding this:
1) A technical clarification of the announcements made by government, and we will be working with other authorities and experts on securing it;
2) An assessment of impacts on short and mid-term schemes, where PWLB was a core part of their financing, looking at alternative sources where the benefits of a scheme in achieving the three thematic priorities are clear; and
3) An update to our regularly reviewed capital programme and investment strategies and plans, to reflect any changes and to put in place a more comprehensive, risk-based approach to accessing and utilising diversified income, investment and funding sources
A task and finish group of officers from Economic Development, Property and Finance sponsored by our Directors of Economy and Corporate Services has been set up to do this.
To halt work due to Covid, beyond what is required as a direct result of the pandemic itself would risk further entrenchment and harm from the disruption caused by the pandemic, and would also remove our ability to build on some of the changes and innovations that have seen more efficient, effective ways of working in alignment with the three 2020 thematic priorities. Officers and many members are proud of the Council’s response to the pandemic, which has seen greater levels of community support and engagement and continued council service delivery than has been experienced by most other areas, and this is also reflected in positive community reaction and feedback.
Councillor Dant thanked Councillor Whitehead for her answer and, by way of a supplementary question he asked:
In revising the Investment Strategy, would you consider an Investment Enterprise Strategy as a component to extend the enterprise approach and connect with local businesses?
Councillor Whitehead replied that she would be willing to consider all opportunities to increase income to the council and to work with local businesses.