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RESOLVED:
 

1.   
That the Strategic Investment Board approve the transfer of assets
to Surrey County Council and wind up Surrey Property Group.

 
Reasons for
Decisions:
 
·        
Having considered a number of potential options and the forecast
financial position of SPG, transferring the assets held by SPG to
SCC and winding up the company is viewed to be the best option to
protect the ongoing revenue budget of Surrey County Council and the
new unitary councils into the medium term.

·        
It also removes the risk of SPG becoming insolvent due to
increasing interest rates on the loans from the council and
subsequently the inability of the external auditors to sign off the
accounts on a going concern basis, which would force the
liquidation of the company.

·        
It is forecast to result in an increase in the income achievable
within the council’s revenue budget in the short term, due to
corporation tax not being payable on the surpluses made from the
assets when held by the council.
 
(The decisions on
this item can be called-in by the Resources and Performance Select
Committee)