The Head of Financial Services has submitted a report to present the funding and budget requirements of the Oxford Direct Services Transformation Project for approval and for recommendation to Council.

Recommendations: That Cabinet resolves to:

1.    Approve the business case for the transformation project within ODS and the capitalisation of £1.25 million revenue costs by the Council related to the Oxford Direct Services Limited Transformation project in accordance with the Statutory Guidance on the Flexible Use of Capital Receipts  and in line with the approved capital budget;

2.    Provide a capital grant to Oxford Direct Services for the capitalised transformation revenue costs to be drawn down upon the Head of Financial Services being satisfied as to the evidence of expenditure provided and to include a repayment clause operated if the forecast returns are not achieved;

3.    Enter into a legal agreement with Oxford Direct Services Limited relating to the capital grant for the capitalised revenue costs of the Oxford Direct Services Limited Transformation project subject to the Head of Law and Governance in consultation with the Head of Financial Services drawing up and being satisfied as to the terms of such agreement; and

4.    Include progress of the transformation project and updates on the financial returns achieved and forecast to be included annually in the Council’s Capital Strategy.

The Head of Financial Services had submitted a report to  present the funding and budget requirements of the Oxford Direct Services Transformation Project for approval and for recommendation to Council.

Councillor Ed Turner, Cabinet Member for Finance & Asset Management, introduced the report. The proposed investment  represented the next phase in the important partnership between Oxford Direct Services (ODS) and the County Council, the principle of further investment having been agreed in the previous budget.

Councillor Nigel Chapman, Cabinet Member for Safer Communities and Customer Focussed Services, said this additional funding was central to ODS’s ambition to be a modern, competitive  and effective company.

While it was recognised that there were other potential ways of increasing the dividend to the Council this was seen to be the most effective approach in keeping with the Council’s values. The Council’s interests would be overseen by, among other things,  Shareholder oversight.

Cabinet resolved to:

1.    Approve the business case for the transformation project within ODS and the capitalisation of £1.25 million revenue costs by the Council related to the Oxford Direct Services Limited Transformation project in accordance with the Statutory Guidance on the Flexible Use of Capital Receipts  and in line with the approved capital budget;

2.    Provide a capital grant to Oxford Direct Services for the capitalised transformation revenue costs to be drawn down upon the Head of Financial Services being satisfied as to the evidence of expenditure provided and to include a repayment clause operated if the forecast returns are not achieved;

3.    Enter into a legal agreement with Oxford Direct Services Limited relating to the capital grant for the capitalised revenue costs of the Oxford Direct Services Limited Transformation project subject to the Head of Law and Governance in consultation with the Head of Financial Services drawing up and being satisfied as to the terms of such agreement; and

4.    Include progress of the transformation project and updates on the financial returns achieved and forecast to be included annually in the Council’s Capital Strategy.