Agenda item

The report will provide an update for the Panel on the progress made in developing an approach, or core set of principles, in respect of commercialisation and to identify areas for inclusion in a future work programme.  The report includes information on the approaches adopted by other local authorities.

Contact Officer: Phil Deighton - Head of Commercial Services

Tel: 01484 221000

(1) That Phil Deighton be thanked for attending the meeting and presenting the report to update the Panel in relation to the Council’s approach to commercialisation.

(2) That a further report be submitted to the Panel in early 2020/21; to include consideration of how the Council might implement a more systematic approach to bringing forward potential opportunities.

Phil Deighton, the Head of Commercial Services, provided an update on the progress in relation to the development of an approach, or core set of principle, in respect of commercialisation including information on the commercial approaches adopted by other local authorities.

The Panel was asked for comments and to give consideration to any specific areas that it would wish add to its Work Programme.

In introducing the report Phil explained that the approach had to align with, and support, the Council’s values and priorities and the four commercial objectives for Kirklees which were:

o   Understand our costs to price products effectively and competitively, to increase income levels and sustain the delivery of priority Council outcomes.

o   Exploit our assets and opportunities by disposing of, acquiring new, or develop existing assets to deliver financial returns.

o   Enhance the effectiveness and efficiency of income collection

o   Embed the concept of commercialism in all services.

An initial high level Action Plan for 2019/20 and 2020/21 had been produced. This would run alongside the range of other commercial activity already being undertaken, such as treasury management and work in respect of the Local Authority Property Fund.

Phil and Eamonn Croston, Service Director – Finance responded to questions from Panel Members as follows:

·         Capturing new and innovative commercial ideas would be a continuous process; this line was included within the Action Plan to raise awareness and ensure that ideas were picked up at an early stage.

·         All alternatives, including the potential to promote the Council’s back office processes to other organisations, would be looked at; there was a need to carefully consider the collection of income and the efficiency of the process and to ensure that it would not lead to bad debt.

·         As part of the budget process every service would have an income target which would be monitored, although this may be a bottom line figure.

·         Information in relation to income from the Council’s commercial properties could be provided to the Panel at any point in time on request. There were approximately 300 commercial assets and the sustainability and suitability of these properties was being assessed.

·         The Treasury Management and Investment Strategy included an enhanced section which captured high level information on commercial investments and this information was within the public domain.

·         In terms of a systematic approach to bringing forward opportunities, this linked in to the ‘efficient and effective’ outcome of the Corporate Plan, which included consideration of best value and value for money. Ideas were being promoted, as part of the capital planning process, particularly in respect of self-funding schemes that could create income opportunities and the aim was to embed best practice in relation to effective and efficient practices. This was an issue that officers needed to consider and how it might be codified in a more systematic way.

Councillor Graham Turner, the Corporate Portfolio Holder said that the Council’s commercial properties had a high occupancy rate and charges would be reviewed as part of the budget process. However, it was important to be mindful of not passing on higher costs to organisations that added value to the Council if they would struggle to afford them.

He said that the commercial approach was a relatively recent concept for Kirklees. The approach would aim to take opportunities to generate additional income but the issues of adding value for the Council and benefits for the local economy were also important considerations. The potential to generate additional income from Dewsbury and Huddersfield Town Halls was already being explored.

RESOLVED -

 (1) That Phil Deighton be thanked for attending the meeting and presenting the report to update the Panel in relation to the Council’s approach to commercialisation.

(2) That a further report be submitted to the Panel in early 2020/21; to include consideration of how the Council might implement a more systematic approach to bringing forward potential opportunities.