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 the
ThamesWey group of companies 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);

         
(iii)  authority for approving a debt sweep, for both VSWL and
ThamesWey for the extended period to
the end of March 2027, continue to be delegated to the Strategic
Director of Finance and Resources, the Strategic Director of
Governance and Corporate Services and the Chief Executive, in
consultation with the Portfolio Holder for Finance, following the
application of the principles, assessments and assurances provided
within the July 2025 Debt Standstill report to Executive;
and

         
(iv) the findings in the Part
II report set out under Agenda Item 12 of the Executive agenda
titled Investment Debt Repayment and Standstill for the
ThamesWey Group 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.”