Issue - meetings

Details of questions should be notified to the Corporate Manager Democratic and Civic Support at least three working days prior to the meeting - by 10am on Monday 7 March 2022. Further information and a copy of the procedure are available from Democratic Services (Committees) (Tel: 01392 265115) with details about speaking at Council to be found here: Public Speaking at Meetings.

The Lord Mayor reported the receipt of a question from a member of the public.

Question from Cynthia Thompson to Councillor Bialyk, Leader.

Mrs Thompson was unable to be present and her question was read out by the Corporate Manager Democratic and Civic Support.

Mrs Thompson

Is the Section 151 Officer able to say how the Intra Loans and any transfer of land made by Exeter City Council to its private development company/subsidiary private companies are not perceived as a distribution of assets and, to date, what amount is owed to Exeter City Council by its private development company?

Response

Exeter City Living is a 100% wholly owned subsidiary of the Council. Any transfer of land at an under-value would increase the value of the investment in the Company by that amount thus not creating a distribution. From a Corporation Tax point of view, Local Authorities sit outside the Corporation Tax regime and therefore this is not applicable.

However, it is important to note two things:-

·         where land is sold at an undervalue, it is likely to need Secretary of State approval (as in the case of Clifton Hill) and there is a wider public benefit consideration; and

·         all loans are transacted using state aid indicated rates of interest and therefore there is no distribution of assets.

The value of debt outstanding was £8.926 million.