Purpose

To receive a report on Investment Debt
Repayment and Standstill 2024-25 and 2025-26.

Content

The Executive RECOMMENDED to Council

That  (i)    it be
noted that the Council will be requesting Exceptional Financial
Support for 2025/26 and this request will incorporate the interest
and minimum revenue provision costs in relation to the loans made
to companies and the debt standstill and debt sweep contained
within the report;

         
(ii)   a 2025/26 financial year
investment debt repayment standstill on the Council’s
investment loans to the Thameswey group
of companies and Victoria Square Woking Limited be approved
(subject to the conditions and caveats set out in this report and
subject to confirmation of Exception Financial Support from central
government) for the financial year 2025/26 as set out in
recommendation (i);

         
(iii)  a debt sweep for the period up to the end of
December 2024 be approved and authority be
delegated to the Strategic Director
for Finance, the Strategic Director - Corporate Resources, the
Director of Legal and Democratic Services and the Chief Executive,
in consultation with the Leader and Deputy Leader of the
Council, following the
application of the principles, assessments and assurances provided
by the actions outlined within this report to determine the value
of the sweep; and

         
(iv)  the findings in the Part II report
set out under Agenda Item 19 of the
Executive agenda titledInvestment Debt
Repayment and Standstill 2024-25 and 2025-26 be noted.

Reason:   The proposals
within the report form part of the Council’s overall
Improvement and Recovery Plan (IRP). 
The background to the Council’s past investment decisions are
set out in detail in Grant Thornton’s report in the public
interest that was considered by a special meeting of Council on 20
November 2024.

                
The debt standstill proposal supports
the strategic aim within the IRP to “Release the council from
unaffordable commitments, whilst protecting the public purse and
optimising the value of existing assets” and “To take a
strategic approach to reviewing the Council’s lending to
companies and borrowing for its property investment estate and
medium term financial strategy.”