Cabinet considered an update on the activities, priorities and progress of the Council’s trading companies. The Lead Member explained that if the proposals were approved, this would be the first report of three each year. The recommendations would also allow for the business plan and section 106 contribution for each property to be presented to Cabinet as it came forward. The report reflected the council’s current focus on property, to build an RBWM for everyone.  The council had taken on board feedback that the company lacked transparency and as a result its name was changed to RBWM Property Company. Members would also no longer be directors of the company; these roles would be filled by senior officers instead.

Cabinet was addressed by Brian Millin. Mr Millin commented that in December 2015 a member of the public asked questions at a full Council meeting about Two5Nine Ltd, the then Leader had given clear assurances that clear links would be placed on the RBWM website in relation to the company. He had said that it had been set up to generate profit to keep council tax low, however the first year showed a trading loss. Mr Millin asked Cabinet to ensure the RBWM website included clear details of the aims of the company and a list of the directors. David Thompson was shown on the report as the Managing Director, but was not listed as a Director. Mr Millin asked for information to be shown on the Transparency section of the webpage, for example monthly accounts. He also requested that year end accounts be clear and not use accounting terms such as related party transactions.

The Lead Member stated that Mr Millin had raised some fair criticisms; he agreed that the information requested including a list of Directors should be included on the website. He would ask officers to ensure this happened as a matter of urgency. He confirmed that David Thompson was an employee of the council and the trading company, but as not a Director. This would also be clarified on the website. he explained that although it remained true that the company’s aim was to make profit, there was now an added focus to build an RBWM for all; affordable housing and key worker housing would be considered as property assets were released.

The Deputy Lead Member for Ascot Regeneration commented that when he had been Lead Member for Finance he had spent a lot of time looking at how the council’s assets could be utilised to create a revenue stream to assist the council in providing services to residents, and other innovative actions. He was delighted that there was now a company with the strategy to use resources to achieve these aims.

RESOLVED UNANIMOUSLY: That Cabinet:

i)       Notes the content of the report

ii)     Receives an update on trading activities three times per annum 

iii)    Be presented (dependent on the level of budget required) with a business case for approval that covers all the financial implications for each property prior to any work commencing with a recommendation to add the appropriate S106 funded budget to the capital programme.