Decision

The Salford City Council has decided to approve a £0.175m working capital loan to The Landing at Media City UK Ltd to cover short-term liabilities.

Analysis

outcome: The loan was approved, with authority delegated to the Section 151 Officer and the Monitoring Officer to finalize terms and execute the loan agreement.

summary: The decision involves approving a short-term working capital loan of £0.175 million to The Landing at Media City UK Ltd, a subsidiary of Salford City Council, to ensure it can meet its liabilities due to delays in external funding.

topline: The Salford City Council has decided to approve a £0.175m working capital loan to The Landing at Media City UK Ltd to cover short-term liabilities.

reason_contentious: The issue may be contentious due to the use of public funds to support a council-owned company, potential risks associated with the loan, and the need for transparency and accountability in the decision-making process.

affected_stakeholders: The Landing at Media City UK Ltd, Salford City Council, residents of the city, participants of the digital skills initiatives, and local taxpayers.

contentiousness_score: 5

political_party_relevance: There is no direct mention of political parties or political influence on the decision within the provided text.

URL: https://sccdemocracy.salford.gov.uk/ieDecisionDetails.aspx?ID=2356

Decision Maker:

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: Salford City Council - Record of Decision   I, Councillor Jack Youd, Lead Member for Finance, Support Services & Industrial Relations, in exercise of the powers contained within the Council Constitution, do hereby:   1.            Approve a £0.175m working capital loan to The Landing at Media City UK Ltd.   2.            Delegate authority to the Section 151 Officer in liaison with the Monitoring Officer to negotiate and agree the final detailed commercial terms of the loan.   3.            Delegate authority to the Monitoring Officer to enter into and complete the loan agreement and any other documents or agreements necessary to facilitate the above recommendations.   The Reasons are: The Landing at MediaCityUK Limited (commonly known by its trading/operating name of HOST (Home of Skills and Technology)) is a wholly owned subsidiary of the City Council. HOST delivers multiple bootcamps and digital skills initiatives to residents of the city and the wider region. Due to delays in external funding and payments quarterly in advance to our operator, HOST require a short-term loan to ensure it can meet its liabilities in advance of cash being received from externally funded programmes.   Options considered and rejected were: Not to provide the loan but the company would be unable to service its liabilities in the short-term awaiting cash flow from external funding sources.   Assessment of Risk: Low   The source of funding is: Loan to be repaid, initially funded through service specific reserves.   Legal Advice obtained: It is understood that the loan is to be made on commercial market terms and therefore does not raise concerns from a subsidy control perspective. The Council has power to provide loans pursuant to s.1 Localism Act 2011 and the Shared Legal Service will support the Council in documenting the loan arrangements.   Financial Advice obtained: Loan to be provided on a commercial basis with a return to Salford City Council.  This cash injection has been factored into cashflow calculations and will enable to cover all outstanding short-term liabilities and allow commencement of programmes awaiting funding from externally funded grants paid in arrears.   Procurement Advice obtained: N/A   HR Advice obtained: N/A   Climate Change Advice obtained: N/A   The following documents have been used to assist the decision process: The relevant documents contain exempt or confidential information and are not available for public inspection.   Contact Officer: Paul Hutchings, Head of Financial Management   Tel: 0161 793 2574   This decision is not subject to consideration by another Lead Member.   The appropriate scrutiny panel to call-in the decision is the Overview & Scrutiny Board.     Signed:                                              Dated: 20th June 2023 Lead Member for Finance, Support Services & Industrial Relations     For Democratic Services use only   This decision was published on 20th June 2023.   This decision will come into force at 4.00 p.m. on 27th June 2023, unless it is called-in, in accordance with the decision-making process rules.

Date of Decision: