The S151 officer provided a verbal update on the Investment Portfolio. Advising the council has several investments and divestments that are built into the Medium-Term Financial Strategy (MTFS) and the exceptional financial support model. The council is on track on terms of what it’s selling and has received £513 million last year from divestments. This was predominantly from the sale of Toucan, JCCLA. The money has been used to pay back loans the council had.

The panel were informed that this financial year has approximately £90 million in divestments. Majority of this will come from selling the council’s share in the Wind Farms. Unfortunately, the process of selling the shares has been delayed, however an agent has been appointed to assist with the sale, therefore the money should be received later in the year.

Approximately 20 million (of the 90 million) in value that amount to seven or eight divestments are being reviewed and advice has been sought to find out if they can be sold, and how as some are low in value.

Members commented that the information was vague, and they would have preferred a report with further detail. Members questioned the urgency around the wind farm sales and asked how the council could budget without timescales. The S151 officer reassured members there is a detailed plan that has been published as part of the MTFS. In addition to this a transparent report about fees will be provided in October to Cabinet and it will be published.

Members questioned what the costs were to recover the £530 million following the completion of the solar farm dispersal. The panel were advised the correct figure is £510 million recovered from the sale of Toucan. With approximately £40 million held by the administrators. Some of the funding will be released imminently. The fees are split into two categories. This includes fees incurred by the council estimated at £11 million up to the end of 2024. In addition to this there are fees that are paid by the administrators which will be deducted from the sale proceeds. Therefore, this won’t be a direct cost to the council.

Action: Section 151 officer to check the specific costings and feedback to members.

The Chair questioned the divestment timelines for the smaller amounts and the estimate of how much it would cost to recover these.

The panel were advised that the investment profile cover 2024- 2027 and includes investments in Redwood and JLCJCF, which is approximately £10 million in total. With an estimated £45 million left in 7-8 tail end investments, that are due 2025, 2026-2027. The financial model will be reviewed, along with weighing up the cost of each sale.

The Chair requested an update on investments be added to the work programme for the November meeting.

Action: S151 to provide a written report on Overview of Investment Portfolio.

Members questioned what updates have been provided to Cabinet.

The panel were advised that Cabinet have received an update on fees in March 2024. The schedules for divestments are included in the budget report that was presented in February 2024, some of these details would have been included in the output report that Cabinet received in June 2024.

Members questioned how the agent for the sale was selected and whether there was a procurement process. Members were reassured there was a selection process and due diligence was undertaken to get a quality provider.