Agenda, decisions and draft minutes
PDF 207 KBVenue: Committee Room, Surrey County Council, Woodhatch Place,11 Cockshot Hill, Reigate, Surrey, RH2 8EF. View directions
Contact: Huma Younis, Committee Manager Email: huma.younis@surreycc.gov.uk
Media
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Apologies for Absence
To note any apologies for absence.
Additional documents: Minutes: Apologies were received from Cllr Tim Oliver.
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Minutes of the Previous Meeting
To agree the minutes from the last meeting.
To follow Additional documents: Minutes: It was explained that the minutes from the meeting held on 16 June 2025 were currently being drafted and would be shared at the next meeting of the Board.
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Declarations of Interest
All Members present are required to declare, at this point in the meeting or as soon as possible thereafter (i) Any disclosable pecuniary interests and / or (ii) Other interests arising under the Code of Conduct in respect of any item(s) of business being considered at this meeting NOTES:
Additional documents: Minutes: There were none. |
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Questions and Petitions
To receive any questions or petitions.
Additional documents: Minutes: There were none. |
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Commercial Investments Corporate Strategy and Governance
The purpose of this report is for the Strategic Investment Board (SIB) to agree the recommendations in respect of the strategy and governance of its commercial investments in the form of Local Authority Trading Companies (LATCOs) and directly-owned investment properties.
(The decisions on this item can be called-in by the Resources and Performance Select Committee) Additional documents: Decision: 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:
Minutes: The report was introduced by the Deputy Chief Executive and Executive Director for Resources who explained that the report set out the governance arrangements in place to deal with the council’s commercial investments in the form of Local Authority Trading Companies (LATCOs) and directly-owned investment properties. The report also highlighted that there would be more of a focus on the scrutiny of the company business plans and the direction of travel for each of the companies going forward. It was explained that a peice of work would be undertaken to ensure there was no conflicts of interest between council officers who advise SIB but also act as directors of any of the LATCOs.
The Chairman stated that the strategic principles listed in the report had already been adopted by SIB and SIB had been operating with these principles at the forefront. It was stated that the strategic principles may be amended when business plans are presented by companies but these would be taken on a case by case basis. It was recognised that Local Government Reorganisation could also potentially have an impact on the strategic principles.
The Deputy Leader queried how performance of companies was managed when officers were also Directors of company Boards. The Deputy Chief Executive and Executive Director for Resources explained that performance was managed via SHIP and where an officer was also a Director they would have to be excluded from the discussions at SHIP. The Director for Finance explained that officers who were also non-executive directors for companies sat on the Board as a Shareholder representatives and supported the company to improve performance.
A further report on updated governance proposals would be considered by SIB later in the year and this would cover the question of council officers as company directors.
RESOLVED:
I. That 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. That 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). |
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Connect2Surrey Business Plan
The purpose of this report is for the Strategic Investment Board (SIB) to approve the annual business plan of Connec2Surrey (C2S), the trading name for Surrey and Kent Commercial Services LLP. C2S is a jointly owned Limited Liability Partnership (LLP) with equal ownership between the Council and Commercial Services Kent Ltd.
(The decisions on this item can be called-in by the Resources and Performance Select Committee) Additional documents: Decision: RESOLVED:
Reasons for Decisions:
To ensure the company business plan is aligned with the company’s agreed strategy and the Council’s investment strategy.
(The decisions on this item can be called-in by the Resources and Performance Select Committee)
Minutes: Item 8 was taken ahead of Item 6 so Members could ask detailed and commercially sensitive questions around the Connect2Surrey business plan. There was a lengthy and in detail discussion around the business plan. The report recommendation was agreed and another two recommendations were considered and agreed by SIB.
RESOLVED:
Reasons for Decisions:
To ensure the company business plan is aligned with the company’s agreed strategy and the Council’s investment strategy.
(The decisions on this item can be called-in by the Resources and Performance Select Committee)
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Exclusion of the Public
That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act.
Additional documents: |
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Connect2Surrey Business Plan
The purpose of this report is for the Strategic Investment Board (SIB) to approve the annual business plan of Connec2Surrey (C2S), the trading name for Surrey and Kent Commercial Services LLP. C2S is a jointly owned Limited Liability Partnership (LLP) with equal ownership between the Council and Commercial Services Kent Ltd. The report contains information which is exempt from Access to information requirements by virtue of paragraph 3, “Information relating to the financial or business affairs of any particular person (including the authority holding that information).
(The decisions on this item can be called-in by the Resources and Performance Select Committee) Decision: RESOLVED:
Reasons for Decisions:
To ensure the company business plan is aligned with the company’s agreed strategy and the Council’s investment strategy.
(The decisions on this item can be called-in by the Resources and Performance Select Committee)
Minutes: There was a detailed discussion around the Connect2Surrey business plan.
Three recommendations were agreed by the Board. Helen Archer-Lock, Steven Brooker and Shella-Marie Smith attended the meeting and answered questions on behalf of the company.
A part 2 minute was done for this item.
RESOLVED:
Reasons for Decisions:
To ensure the company business plan is aligned with the company’s agreed strategy and the Council’s investment strategy.
(The decisions on this item can be called-in by the Resources and Performance Select Committee)
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Publicity for Part 2 Items
To consider whether the item considered under Part 2 of the agenda should be made available to the Press and public.
Additional documents: |