The Leader of the Council is to present a report.

1. That, in accordance with paragraph 4(1) of the Council’s Budget and Policy Framework Rules as set out in Part 4 of the Council’s constitution, and having consulted with the relevant statutory officers and obtained the agreement of the Chair of the Scrutiny Committee, this matter be considered to be urgent, in that any delay caused by the key decision and call-in processes would seriously prejudice the legal or financial position of the Council or the interests of the residents of Trafford.

2. That approval be given to the proposed arrangements to provide investment by way of shareholder loans alongside the other shareholders as more particularly set out in the body of this report. 

3. That the increase be approved in the capital budget of £12.95m to be funded through prudential borrowing. 

4. That approval be given to the Council entering into a legally binding letter of commitment alongside the other shareholders as set out in the report. 

5. That authority be delegated to the Chief Executive in consultation with the Corporate Director of Finance and Systems, Corporate Director of Governance and Community Strategy and Executive Member for Finance and Investment to negotiate and finalise the detailed funding package including the letter of commitment, shareholder loan, as outlined in the body of the report together with any other necessary ancillary documents or agreements to effect the transaction.

6. That authority be delegated to the Chief Executive, Corporate Director of Finance and Systems and Corporate Director of Governance and Community Strategy to approve the detailed arrangements for, and terms of, the letter of commitment, the shareholder loans as outlined in the body of the report together with any ancillary documents or agreements to effect the transaction.

7. That authority be delegated to the Corporate Director of Finance and Systems to approve the detailed accounting arrangements for the loan, including the classification between revenue and capital.

8. That authority be delegated to the Corporate Director of Governance and Community Strategy to authorise the execution and completion of the letter of commitment and Shareholder Loan documentation (and any other necessary ancillary documents or agreements) to put into effect the above recommendations and the proposals as set out in the report.

The Leader of the Council submitted a report presenting for the Executive’s consideration a proposed strategic investment decision, made in the context of the current Covid-19 pandemic emergency, and designed to support the financial position of both the Council and the wider city region. The importance was emphasised to Members of the need for particular confidentiality, in respect of commercial and legal considerations; and a prior briefing had been held for Members across political groups, given the significance of the proposal, to ensure that they were fully briefed on the background and key issues, under similar conditions of confidentiality.

Further to a range of other issues discussed in detail at the prior briefing, an opportunity was provided for Members to raise additional queries, which related to the status and nature of the interests of other parties linked to the proposed investment, potential business rates implications, and considerations of financial and broader sustainability issues. On the latter point, the Leader of the Council agreed that he would be happy to press for a detailed briefing to be provided to investors in due course.

            RESOLVED -

(1)       That, in accordance with paragraph 4(1) of the Council’s Budget and Policy Framework Rules as set out in Part 4 of the Council’s constitution, and having consulted with the relevant statutory officers and obtained the agreement of the Chair of the Scrutiny Committee, this matter be considered to be urgent, in that any delay caused by the key decision and call-in processes would seriously prejudice the legal or financial position of the Council or the interests of the residents of Trafford.

(2)       That approval be given to the proposed arrangements to provide investment by way of shareholder loans alongside the other shareholders as more particularly set out in the body of this report. 

(3)       That the increase be approved in the capital budget of £12.95m to be funded through prudential borrowing. 

(4)       That approval be given to the Council entering into a legally binding letter of commitment alongside the other shareholders as set out in the report. 

(5)       That authority be delegated to the Chief Executive in consultation with the Corporate Director of Finance and Systems, Corporate Director of Governance and Community Strategy and Executive Member for Finance and Investment to negotiate and finalise the detailed funding package including the letter of commitment, shareholder loan, as outlined in the body of the report together with any other necessary ancillary documents or agreements to effect the transaction.

(6)       That authority be delegated to the Chief Executive, Corporate Director of Finance and Systems and Corporate Director of Governance and Community Strategy to approve the detailed arrangements for, and terms of, the letter of commitment, the shareholder loans as outlined in the body of the report together with any ancillary documents or agreements to effect the transaction.

(7)       That authority be delegated to the Corporate Director of Finance and Systems to approve the detailed accounting arrangements for the loan, including the classification between revenue and capital.

(8)       That authority be delegated to the Corporate Director of Governance and Community Strategy to authorise the execution and completion of the letter of commitment and Shareholder Loan documentation (and any other necessary ancillary documents or agreements) to put into effect the above recommendations and the proposals as set out in the report.