Content

RESOLVED:
 
         
I.       
For SIB to approve the continuation of the existing governance
arrangements. Noting that an updated governance proposal paper will
be brought to SIB later in 2025.
 
        
II.       
For SIB to approve the strategic principles set out below:
a.   
Investments must either deliver a favourable financial return or
provide a service.
b.   
Services provided to the Council by LATCO’s must be subject
to some form of procurement or soft market testing on an
appropriate cycle for that service, with the award of contracts
being based primarily on quality, value for money and other typical
procurement criteria.  Services should
not rely on Teckal exemptions without any comparison to alternative
services.
c.    
Investments for the purposes of trading or general commercial
investment should produce a financial return that demonstrates
financial benefits above the opportunity cost of investment and an
agreed risk premium. 
d.   
Risk monitoring should be in place for each LATCO, reviewed at
company Board level at least quarterly, and summarised for higher
level risks at the Shareholder Investment Panel (SHIP) and SIB
twice per year as part of formal reporting.
e.   
Additional consideration should be given in 2025/26 and 2026/27 to
potential forthcoming changes to circumstances due to Local
Government Reorganisation (LGR).
f.     
The strategy of each LATCO should be refreshed at least every 3
years, in addition to annual business plans.  These are to be reviewed by SHIP and approved by
SIB.
 
Reasons for
Decisions:
 

To ensure there is a transparent and
effective governance process in place.
To ensure investments deliver either
a financial benefit or service benefit to the Council.