This month my Cabinet colleagues and I will be asked to approve the council’s first commercial strategy.
It doesn’t sound the most exciting document I admit, but it’s actually very important as it sets out how we’ll further generate income by selling our services, investing and operating more like a business.
With our government funding only going one way, we couldn’t deliver a balanced budget and provide the services our residents rely upon without generating the income we do.
Last year we made £72million through investments, sharing of services, providing services for other organisations, property rental and fees and charges.
For example, we generated £2.7million by selling the energy produced by our energy from waste plant and our commercial property portfolio which is worth £21million generates an annual income of around £3million – that’s a 14 per cent return.
We share our planning and trading standards departments with other councils, bringing in £4million annually and our £15million loan to Propiteer Hotels Ltd for the building of the new Hilton hotel at Fletton Quays will make us £500,000.
Our sharing of services with Cambridgeshire County Council, in particular the chief executive and her senior leadership team, has delivered sizeable savings.
I could go on, but these are just a few of the ways we’re generating income and working in a more commercial way to be able to provide the services you need, despite an 80 per cent cut in our government funding.
And with that funding due to decrease even further in years to come, we have got to find more ways of generating our own income. Our commercial strategy will help us to do that. (more…)