Issue - meetings

To enable Cabinet to consider the comments made by the Audit Committee in respect of the Council’s policy of land purchases in Jaywick.

That the Finance, Revenues & Benefits Portfolio Holder’s response was endorsed.

Cabinet was informed that, at its meeting held on 22 September 2016, the Audit Committee had considered the actions in respect of the Annual Government Statement 2016 and, in particular, the acquisition and development of sites in Jaywick. At the same meeting, the Audit Committee had been informed as part of the Statement of Accounts process that an impairment charge had been made to the Housing Revenue Account in 2015/16 totalling £0.700m, which reflected the lower balance sheet or ‘book’ value of land purchased in Jaywick compared with the actual purchase price.

The Audit Committee had agreed to comment to Cabinet as follows:

“That Cabinet review the policy in respect of any future land purchases in Jaywick

given the impairment loss of £0.700m in 2015/16.”

Members were aware that the existing policy in respect of the purchase and development actions in Jaywick had been set out in a report to Cabinet on 5 September 2014 when it had been acknowledged that the Council would need to take a leadership role to ‘kick start’ regeneration in Jaywick and that it could take a longer term view on its initial investment.

The Finance, Revenues & Benefits Portfolio Holder had considered the Audit Committee’s comment and had responded as follows:-

“It has been and remains the policy that all land purchases are carefully considered to fully assess the financial implications.”

Having considered the comment of the Audit Committee and the Portfolio Holder’s response thereto:-

It was moved by Councillor G V Guglielmi, seconded by Councillor Turner and RESOLVED that the Finance, Revenues & Benefits Portfolio Holder’s response be endorsed.