To comment on the Cabinet Regeneration Sub Committee report.

The Panel considered the Cabinet Regeneration Sub-Committee report that sought approval of the RBWM Property Company’s initial five year business plan.  The Lead Member explained that the company had recently been renamed to help make it more transparent.  The business plan aimed to achieve three things:

·         To best put the council’s assets to use for the council tax payer and resident, by turning assets as efficiently as possible into revenue generating streams.

·         Developing an affordable housing property portfolio.

·         Being a key part of Maidenhead regeneration by increasing housing in the town centre

(Simon Fletcher joined the meeting)

 The Panel were informed that the key principles were:

·         Ensuring assets were not simply disposed of for short term gain.

·         No overall cost to the council tax payer

·         Providing strategic direction; the shareholder operating protocol ensured transparency in decision making including proper consultation.

The Lead Member informed the Panel that by the end of the five year period it was anticipated that the asset base would amount to £45m with dividends of over £600,000.  During the five to ten year period, arrangements with Joint Ventures and the development of the golf club site would mean the release of further assets.

The Chairman asked if there was a opt out clause for the Council and what would happen if there were a conflict of interest between the Council and the company.  The Panel were informed that the company was owner by the Council but there were termination clauses on the articles and that the shareholders had reserved powers over the directors so decisions would need Cabinet / Lead Member approval.

Cllr Quick offered congratulations on the paper as it would benefit both residents and the Council.

Cllr Jones questioned why the repayment of loans was for interest only pre 2017 and questioned if the 80% discount for affordable housing was offering value for money for the company.  The Panel were informed that the none payment on capital loans prior to 2017 was to aid the company getting established and that if the 80% discount was not working then adjustments could be made to the business plan and this percentage changed.

The Chairman mentioned that the company would be paying corporation tax and VAT and asked if we would be selling property with VAT and also asked would the sale of land be subject to VAT.  The Panel were informed that new build would be subject to 0% VAT whilst refurbishments 5% VAT.  With regards to the sale of land the intention was to hold onto our assets. 

Cllr Bowden mentioned that it was good to see the affordable housing element and questioned if it was just for RBWM staff and where discounted rent was offered was this classed as an employment benefit and thus taxable.  The Panel were informed that the Council used a wide definition of key workers and this included health workers.  The offer of discounted rent to key worker was not taxable; but the Lead Members said he would check.

Cllr Bowden also asked if there was any reason why the affordable housing element was not going to housing associations and was informed that the Council had investigated if the company should become a Registered Provider but because of the number of properties this was not advisable; it was something that may be revisited in the future as the housing stock grows.

Cllr Quick asked if the CIL could be used as the report talks about S106.  The Panel were informed that CIL could not be used for affordable housing but S106 could still be used for specific areas such as affordable housing.

Resolved Unanimously:  That the Corporate Services O&S Panel considered the Cabinet Regeneration Sub Committee report and fully endorsed the recommendations.  The Panel asked for clarification if offering discounted rent to employees was subject to tax as a benefit of employment and thanked cllr Rankin or presenting his report.