Decision details

Tom Southall presented the report by the Director of Housing & Property, seeking further funds for this property investment, which would be forwarded to council for approval as this altered the corporate capital programme.  Councillor Donna Jones as Leader was very supportive of this and felt that in response to the Chancellor's autumn statement the removal of the local government grant formula there was a need to look for high yields through rents.  She wished to stress that in response to the misconception in recent publicity this was to do with borrowing for investment and an income for the city council and it was not a capital spend that could be used for alternative projects such as the Northern Quarter.  If there was a good proposition available in the Portsmouth area this would be considered as well as those outside of the area.

RECOMMENDED City Council that:

i)             The Director of Finance & S151 Officer be authorised to amend the Corporate Capital Programme, Property Investment Fund by adding an additional £20m financed from Prudential borrowing in 2015/16, to acquire additional investment property.

ii)            That any unutilised borrowing ability within the Property Investment Fund in 2015/16 be automatically carried forward into 2016/17.