Purpose

To receive a report on Investment Debt
Repayment and Standstill 2025-26 and 2026-27.

Content

The Executive Recommended to Council

That (i)    it be noted that the Council will be requesting Exceptional
Financial Support for 2026/27 and this request will incorporate the
interest and minimum revenue provision costs in relation to the
loans made to the company and the debt standstill and debt sweep
contained within the report;

         
(ii)   a 2026/27 financial year investment debt repayment
standstill on the Council’s investment loans to Victoria
Square Woking Limited be approved (subject to the conditions and
caveats set out in the report and subject to confirmation of
Exceptional Financial Support from central government) for the
financial year 2026/27 as set out in recommendation (i); and

         
(iii)  the findings in the Part II report set out under
Agenda Item 15 of the Executive agenda titled Investment Debt
Repayment and Standstill 2025-26 and 2026-27 be
noted.

Reason: The proposals within the report form part of
the Council’s overall Improvement and Recovery Plan
(IRP).  The background to the
Council’s past investment decisions are set out in detail in
Grant Thornton’s report in the public interest that was
considered by a special meeting of Council on 20 November
2024.

                
The debt standstill proposal supports the strategic aim within the
IRP to “Release the council from unaffordable commitments,
whilst protecting the public purse and optimising the value of
existing assets” and “To take a strategic approach to
reviewing the Council’s lending to companies and borrowing
for its property investment estate and medium-term financial
strategy.”