Decision Maker: Executive, Council

Outcome: Recommendations approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: December 5, 2024

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.”