Agenda item

To receive the report of Fay Hammond (Executive Director, Resources)

The Panel received an update report, providing an overview of the current workplan of the Commercial services team and outlining future proposals for delivery9ing a commercial approach across Council services together with current income from Commercial Property Assets and plans for a portfolio review.

The following comments were received:

Commercial:

1.         Business cases for new projects to include project management.

2.         Service reviews for trading services, examples of which include:

n   Grounds maintenance which is now sourced in house.

n  Fleet workshop - provides services for third party organisations

n  NEXUS created a saving to the Council

n  Southgate Cemetery

n  Commercial Waste Services, to include how they are structured, monitor customer base.

3.         It was noted that the report lacks details on property and commercial schemes and income generation. How much income did the Council make?

4.         In response £2.2m and figures include total of project generation for 2021-22.

5.         NEXUS is not a Pupil Referral Unit (PRU) which was deemed better from an educational prospective as less expensive than a PRU.

6.         Enfield Council trade with 120 schools across the country, often on-line, across 57 services.  This allows patterns to be monitored easily. The Hub allows for a stronger invoicing system.

7.         In-house chefs in schools and good feedback has been received on quality and nutritional value of school meals.

8.         A survey was conducted to schools on all services provided.  An offer for 2022/23 is tailored around customer demand.

Property:

1.            Income had been held up.

2.            There was a rent free period during COVID meaning rental income was reduced.

3.            Income had been maintained at the expected levels.

4.            Looking at incentives to increase income.

5.            Vacancy rates showed improvement from 3.9% to 3.5%.

6.            The portfolio required investment and there would be a review of all commercial and operational assets.

7.            There was an active review to look at these higher-level targets for leasing within Parks.  The asset had to be understood and know what is best for that asset.  It was important to consider the condition of those hubs.

8.            The strategy for reviewing assets in public spaces namely Broomfield Park and the bowling green was queried.  In respect of the commercial portfolio estimated at £9.8 million, it was queried whether these are effective managed assets or whether this will increase.  It was noted that Broomfield Park is managed by the Leisure team. The majority of retail is managed on behalf of the HRA as well as ground rents from car parks and large supermarkets.  A potential review on how estates can improve for the future was discussed.

9.            It was noted by the Panel that retail is a key issue as the increase in remote working has added more pressure on small industrial units.  Officers advised that they will be led by political direction on whether it is best to rent or whether it will focus on the population.

10.         The Council’s approach to reaching targets was questioned and it was noted that current focus is on commercial income which is not without risk.  In respect of targets it is important to have a commercial strategy that is ambitious but realistic.