Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: Yes

Date of Decision: September 25, 2025

Purpose:

Content: RESOLVED:   1.    That the Strategic Investment Board (SIB) approves the recommended enhancements of SHIP governance as follows:   SHIP reporting to SIB to include the following: Shareholder triennial Investment Strategy. Individual annual business plans produced by each investment entity (covering companies, the Council’s directly owned investment property portfolio, and any other relevant legal bodies). Overall Corporate Investment Business Plans for the investment entities. Individual annual performance reviews produced by each investment entity. Overall Corporate Investments Performance Review (Annual Report) including annual performance reviews of each company. Any report containing exempt information under Section 100A of the Local Government Act 1972 will be presented as a Part 2 report. The Overall Corporate Investments Business Plan and Performance Review should include additional elements not currently referenced in the annual report: Significant risks Forward plan of SIB activities Summary of SIB activities during the year Training undertaken by Directors Resources and Performance Select Committee can review all formal reports (Part 1 and Part 2).   At least one scheduled additional informal business update per year to review half year performance between SHIP and the investment entities. Informal discussions between SIB and the investment entities to be scheduled if required. Reports will be processed through the Council’s One Council pipeline which includes Corporate Leadership Team (CLT) and Informal Cabinet (ICAB) where appropriate, prior to SIB. Minutes of Part 1 discussions at SHIP to be circulated to the Asset Strategy Board (ASB) for information. SHIP terms of reference to be amended as follows: Panel membership to consist of the Deputy CEX & Director Resources (s151 Officer) (Chair), Director of Finance (Deputy s151 Officer) (Deputy Chair), Director of Land and Property, Director of Customer, Culture & Transformation, and the Director of Law and Governance (Monitoring Officer). For a SHIP meeting to be quorate, 3 of the 5 panel members (or their deputies) must be present, always including either the Chair or Deputy Chair. A deputy may be nominated by a panel member but must possess adequate experience and knowledge to fulfil the role of a deputy. Where a conflict of interest exists for an individual on the panel membership and as a director of an individual investment entity, clarity will be made in the meeting under which role the individual is acting for relevant agenda items. Training to be provided for Directors, members and officers on conflicts of interest and a draft Conflict of Interest Policy  - August 2025 is attached in Annex 2 to this report, which will assist in identifying when a conflict may arise and the steps that need to be taken to avoid such conflict.   SHIP will forward decisions to SIB that it has made under its delegated powers, for information. Any urgent decisions taken by SHIP outside of formal meetings will be recorded in the minutes of the next SHIP meeting. SHIP to review the performance of each investment entity on an annual basis. In turn, company boards will be expected to review the performance of their respective Directors.   Reasons for Decisions:   ·         Transparency of performance will be strengthened by the inclusion of all investment entities Business Plans and Performance Reviews, whereas currently only property investments are referenced. ·         Submission of Business Plans and Performance Reviews by the investment entity may contain confidential and commercial information and as such should be reported under part 2 of the SIB agenda. ·         Provision of all investment entities’ Business Plans will provide greater transparency to Councillors of the future expectations and strategy for each investment. Currently only the recent performance is reviewed by the Resources and Performance Select Committee (R&PSC), rather than forward-looking business plans. ·         The overall Corporate Investments Strategy will be more up to date by the process of an annual refresh, and annual business plans will be aligned to the overall strategy. ·         To drive greater accountability, transparency, key stakeholder management and strengthen internal controls. The ASB’s review role has been replaced in the governance process with greater oversight through the Council’s One Council pipeline which includes Corporate Leadership Team (CLT) and Informal Cabinet (ICAB).   (The decisions on this item can be called-in by the Resources and Performance Select Committee)