"Coventry council investments face closer scrutiny in bid to avoid taxpayer losses"

The council hopes it will help avoid challenges faced by other authorities



Millions of pounds worth of taxpayer investments will be held to closer scrutiny under council plans to merge its commercial portfolio to a new holding company.

Coventry City Council has pumped millions of pounds into its commercial property portfolio over the years, which includes Coombe Abbey Hotel and Tom White Waste.

In recent years some such as Coombe have come in for criticism with loans billed as “taxpayer bailouts” – the most recent in 2020 saving the hotel from closure as it struggled with the impact of Covid.

But the running and governance of such ventures will receive far greater scrutiny under plans which would create a new public Shareholders Committee which – for the first time – would include direct oversight from councillors across its portfolio.

Meetings would also be subject to public scrutiny and audit committees.

Shares of all investments would move to a new holding company at the end of October, if plans receive the backing from councillors at full council on September 7.

Coventry council has a range of investments which include the £14.5m purchase of waste management company Tom White Waste Limited in 2020, and the reported £11m purchase of Coombe Abbey Park Ltd – the operator of Coombe Abbey Hotel – in 2017.

The authority also has shares in Coventry and Solihull Waste Disposal Company, Birmingham Airport, the UK Battery Industrialisation Centre, Friargate Joint Venture and Sherbourne Reycling Ltd.

The ruling Labour group has previously said such investments are made to “plug the gap” of lost government funding by driving revenue to spend on council services.

However returns have dropped on Coombe Abbey and Birmingham Airport, Mr Walster said, which have both struggled during Covid-19, although he noted dividends from Tom White Waste went up to £7m a year.

Council shares in Birmingham Airport and Coombe Abbey Hotel dipped by £15 million at the start of the pandemic.

Cllr Duggins said membership of the new committee is unknown but “most will be from the governing group”.

Looks to me like a system for AVOIDING scrutiny?