Decision

RESOLVED:

1. That the Strategic Investment Board approve the transfer of assets to Surrey County Council and wind up Surrey Property Group.

Reasons for Decisions:

·         Having considered a number of potential options and the forecast financial position of SPG, transferring the assets held by SPG to SCC and winding up the company is viewed to be the best option to protect the ongoing revenue budget of Surrey County Council and the new unitary councils into the medium term.

·         It also removes the risk of SPG becoming insolvent due to increasing interest rates on the loans from the council and subsequently the inability of the external auditors to sign off the accounts on a going concern basis, which would force the liquidation of the company.

·         It is forecast to result in an increase in the income achievable within the council’s revenue budget in the short term, due to corporation tax not being payable on the surpluses made from the assets when held by the council.

(The decisions on this item can be called-in by the Resources and Performance Select Committee)