URL: https://mycouncil.surreycc.gov.uk/ieDecisionDetails.aspx?ID=6009

Decision Maker:

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: 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:   To ensure there is a transparent and effective governance process in place. To ensure investments deliver either a financial benefit or service benefit to the Council.  

Date of Decision: June 25, 2025