Building on the Council approval for a £10 investment fund in February 2016 and linking to the Efficiency Plan and the Transformational Programme this report expands the fund proposal and provides criteria for both the investments made by the fund and the governance arrangements around the management of the investment fund.

In addition the report proposes investment to increase future collection of Non-Domestic Rates (NNDR) tax revenues within Torbay.

That the Council be recommended:

(i)       that the Investment Fund be increased by £40 million to a total of £50 million to be initially funded by prudential borrowing, with the revenue costs associated with that borrowing (MRP and interest costs) to be funded from the investment returns or higher NNDR income;

(ii)      that the Investment Strategy for the fund as detailed within Appendix 1 be approved;

(iii)      that, subject to the deletion of 7.4(a) so as to require all decisions on allocations from the Investment Fund to be approved by the Council, the governance of fund as detailed within paragraph 7.4 be approved; and

(iv)     that the Chief Executive be delegated authority to set up a delivery team including sourcing external support if required, to be funded from the investment returns.

To make investments in property (within and outside Torbay) and increase revenue from National Non-Domestic Rates (NNDR) in order to increase revenue streams.

Alternative options were set out in the submitted report but not discussed at the meeting.

The recommendations of the Mayor will be considered at the Council meeting on 22 September 2016.

The Council approved a £10m investment fund in February 2016.  The Council has reviewed this fund and how it can help deliver the Council’s Efficiency Plan and Transformation Programme and proposed to expand the fund by £40m.  The submitted report set out criteria for both the investments made by the fund and details the proposed governance arrangements around the management of the investment fund.  In addition the report proposed investment to increase future National Non-Domestic Rates (NNDR) revenues within Torbay.

Examples of good practice used by other local authorities with similar funds had been incorporated into the proposals.

Following the Policy Development and Decision Group (Joint Operations Team) the Mayor attended the Overview and Scrutiny Board meeting where further discussion took place in respect of the Investment Fund.  The Mayor reviewed his original proposed decision stated at the meeting to support the recommendations of the Policy Development and Decision Group as he felt that all Members should be involved in decisions to allocate money from the Investment Fund and his final decision is set out above.

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