Decision details

Approval is sort to create a subsidiary organisation to Peterborough Limited to aid the efficient and effective future delivery of services.

Cabinet considered the report and RESOLVED to:

1.     Subject to the undertaking of due diligence on and receipt by the Council of satisfactory legal, financial, procurement and taxation advice in connection with the proposed delivery structure, approve that Peterborough Limited establish a not-for-profit company limited by guarantee as a wholly owned subsidiary to deliver the Council’s leisure services on an interim basis until 31 March 2024.

2.     Approve the amendment of Peterborough Limited’s Articles of Association, accounting and reporting practises as may be necessary to affect the decision in recommendation 1, and the adoption of a further Peterborough Limited reserved matter, namely that Cabinet must approve the alteration of any matter reserved to Peterborough Limited in relation to any subsidiary.

3.     Following receipt and approval by the Executive Director of Corporate Services of the satisfactory legal, financial, procurement and taxation advice referred to in Recommendation 1, to approve the delegation of authority to the Executive Director of Corporate Services, in consultation with the Director of Governance, the Executive Director for Place and Economy, and the Cabinet Member for Communication, Culture and Communities, to take all necessary steps to protect the interests of the Council and effect the decision in Recommendations 1 and 2, including negotiating and entering into agreements.

A not-for-profit company limited by guarantee was P-Ltd's preferred option in principle, but this was subject to further due diligence on the part of the Council and receipt of advice in accordance with Recommendation 1.

The Council would then be able to assess which option would enable P-Ltd to continue to deliver leisure services on behalf of the Council in the most cost-effective way. This report did not impact on the separate work which was being carried out to explore long-term delivery options for the leisure services.

Alternative options were set out within Appendix 1 - Exempted Section Not for Publication Business Case.

None.

Cabinet Meeting, 11th June 2018. Item 6

https://democracy.peterborough.gov.uk/ieListDocuments.aspx?CId=116&MId=4142

Cabinet Meeting, 17th December 2018. Item 4.

https://democracy.peterborough.gov.uk/ieListDocuments.aspx?CId=116&MId=4214

Shareholder Committee Meeting, 2nd March 2020. Item 5.

https://democracy.peterborough.gov.uk/ieListDocuments.aspx?CId=721&MId=4346&Ver=4