Agenda item

To consider recommendations from the Overview and Scrutiny Board on items not otherwise included on the Audit and Governance Committee agenda.

The Overview and Scrutiny (O&S) Board on 3 February 2025 considered a report on the Budget and Medium-Term Financial Plan and recommended that the Audit and Governance Committee instigate an investigation on the Carters Quay development.

The Chair of the O&S Board, Cllr S Bartlett, provided the Committee with a detailed summary of how the Carter’s Quay development had progressed since first reported to the Board in August 2021, a key concern being that the Council had paid £15.3million towards a development where the contractor, Inland Partnership, had entered administration late in 2023. Officers were now in negotiation with the Administrators to recover the land. The project was identified in the Budget report as a significant risk to the Council. Cllr Bartlett outlined some key lines of inquiry around due diligence which the Committee may wish to consider if it accepted the Board’s recommendation.

The Monitoring Officer was asked for advice on how to proceed. She explained that it was not in the best interests of the Council to support an investigation at the current time as it may undermine the ability of the Council’s appointed advisors to protect the Council’s interests and seek the best outcome. In terms of scope, the issues raised may also be better addressed by the O&S Board and then referred to Audit and Governance to monitor any lessons learned. The Portfolio Holder for Finance welcomed the appointment of insolvency practitioners. He also advised caution against compromising the Council’s position.

The Committee acknowledged the sensitivities involved. However, it was argued that this should not prevent an investigation taking place on such a high-risk issue. Members discussed how best to progress the recommendation. It was proposed that an investigation into governance and processes of regeneration projects including Carter’s Quay could be added to the Committee’s work plan. Some Members felt a scoping exercise on Carter’s Quay should get underway as soon as possible to ensure Members were fully prepared. The Chief Executive suggested that the Committee may wish to receive an update on matters of fact about Carter’s Quay and then decide what areas to focus on. Some Members were concerned about the potential consequences of delaying/extending the timescales and the clarity of the Committee’s intention. Following discussion, it was agreed to request an update on Carter’s Quay as part of the Corporate Risk Register report at the March meeting. Members indicated that they would welcome any factual information available to be circulated as soon as practicable in advance of the meeting, this may include information classed as exempt but as much information as possible should be in the public domain. It was suggested that the Chief Executive could confirm in writing with members what information could be made available and when.

During the debate the following points were also made:

• That the gap between Overview and Scrutiny and Audit and Governance in terms of the remit for ongoing/live projects needs addressing, possibly when considering the assurance framework report
• That the lack of information provided in the O&S Board’s recommendation was regrettable as it had prevented the Independent Persons from taking a meaningful part in the discussion and offering the committee their insight from the public’s perspective.

RESOLVED that:

a)    The Audit and Governance Committee includes on its work plan for 2025/26 an investigation into the Council’s governance and processes around regeneration projects with focus on the Carter’s Quay development;

b)    The Audit and Governance Committee asks for an update on the current ongoing work on the Carter’s Quay development as part of the Corporate Risk Register report at the next committee meeting on 20 March 2025.

Voting: Unanimous