Agenda item

Rachel Campbell (Senior Policy Officer & Head of Regional Programme for the British Property Federation) introduced the item. She explained that the BPF had produced a report on unlocking growth and investment through public/ private collaboration which was due to launch on 25^th January. She summarised the key requirements for partnerships as being;

·         A long term view from the private sector.

·         Respect for the history of local authorities and their operating practices.

·         An acknowledgment from the private sector of the different types of need found in local government.

·         The consolidation of central government funding streams for economic growth and infrastructure investment.

·         Making local growth central to future investment strategies.

Will Colthorpe (Chair of BPF’s Development Committee) provided the board with the development sector’s perspective on public and private collaboration. He explained that whilst the private sector has access to capital and expertise, it can suffer from a short term outlook, a shortcoming which can be offset by working in partnership with local government. He elucidated the following key elements for local authorities in supporting growth through such partnerships;

·         Trust between the council and development partner, allowing for flexibility in design and implementation of projects.

·         A positive attitude towards these partnerships and their potential benefits.

·         A clear vision from councils, including key priorities and achievable targets.

·         A supportive procurement process which prioritises the long term partnerships, low value uses and smaller enterprises which are valued by councils.

Pete Gladwell (Head of Public Sector Partnerships, Legal & General (L&G) Real Assets) provided the board with an investor’s perspective on public/private partnership. He explained that social impact was becoming increasingly important in L&G’s investment strategy. He summarised the key factors in a successful relationship as being;

·         A clear investment strategy from local government which capitalises on its strengths and reduces risks, for example aggregation of sites to prepare for private sector investment.

·         Collaborative investment between the public and private sectors in non-traditional areas, such as infrastructure or health and social care.

Discussion

Members supported the aims and objectives of the paper, highlighting the ability of such partnerships to increase commerciality, attract foreign direct investment as well as offset political instability and reductions in funding. They highlighted the need to communicate the benefits to the wider public sector, including accurate information about the often exaggerated risks involved.

Members also raised the following issues;

·         The degree to which these lessons are applicable to smaller councils as well as large urban areas.

·         The need to use public/private partnerships to increase the available of private rent and housing availability.

·         The need to avoid competition with the private sector by clearly communicating expected revenue.

·         The need to develop the capacity of planning departments in local authorities to enable and support partnerships 

·         Members also expressed a desire for BPF to support the sector in lobbying for future planning department funding, cost recovery on planning fees and reform of Section 106.

Members were invited to the launch event on 25^th January.

Decisions

The Members of the Environment, Economy, Housing and Transport Board;

1.    Noted the update and provided feedback to shape future work between the BPF and LGA.

2.    Discussed and highlighted key issues in relations councils’ approach to public/private collaboration and adopting a more commercial mindset.

3.    Requested a guide and implementation plan to be produced, in order to enable councils to implement the recommendations of the report.

Actions

Officers are to;

1.    Develop work with BPG along the lines provided by members.

2.    Produce a guide and implementation plan for recommendations contained in the published report.