Agenda item

Notices of Motion

To consider the following Motion to be proposed by Councillor Danny Lee (seconded by Councillor Wallace):

 

Full Council notes:

 

1.    That this Council has unanimously declared a Climate and Nature emergency and recognises the interdependences between the two emergencies.

 

2.    The supporting motions for the emergencies above commit the Council to achieve net zero carbon emissions by 2030 and do all it can to protect and enhance nature.

 

3.    There are now 6 years left to achieve the net zero District carbon target date.

 

4.    The council has been progressing a package of low carbon opportunities through its Carbon Neutrality Action Plan (CNAP) which has been updated based on a refreshed Roadmap to reach the District wide net zero target by 2030.

 

5.    The Council’s 2023/24 ‘Treasury Management Strategy Statement’ and ‘Annual Investment Strategy’ has acknowledged Community Municipal Investments [CMI] as a funding option. This approach already has the support of 9 Councils; with another 4 Council CMIs due by June plus 2-3 imminent for a second issue including Bristol City Council. [1]

 

6.    Research reveals:

o   73% of savers and investors are interested in lending money to their council if it helps deliver environmental or socially beneficial projects (Place Climate Action Network).

o   On average every 100,000 people hold £4bn of savings and investments in the UK. The vast majority of this wealth currently flows out of communities into national or international saving and investment products (ONS).

o   Not all of this money will be seeking low risk return profile of CMI, but even if only 5% of this money is looking for a low-risk option this represents £200m of potential borrowing available within a typical council’s area (Abundance).

 

7.    This source of finance is a way to channel local savings into local projects [2].

 

8.    All ‘environment’ projects need routine robust business plans based on the Council Plan including the CNAP plus Nature Emergency resolutions.

 

 

9.    That offering local savers a way to support the District’s journey to carbon neutrality and nature protection/enhancement should be developed.

 

10.  That offering investment through municipal bonds is an established way to develop local infrastructure for these emergencies [3]. This could complement other projects such as in the example at Bristol Energy Cooperative.

 

11.  CMIs offer a very different set of financial benefits to investors when compared with investments offered by commercial companies.

 

12.  That CMIs could help us develop a low carbon Winchester District in partnership with our community.

 

13.   CMIs provide multiple Engagement and Social Value benefits as a    powerful and complementary community engagement tool.

 

14.      Winchester should seek to learn from the other pioneers of CMI in developing appropriate local opportunities for local investors [e.g. 4]

 

Full Council resolves:

 

1.    To continue to develop Community Municipal Investments for Winchester.

 

2.    To request officers to identify carbon saving and high nature projects suited to CMI investment in conjunction with appropriate stakeholders. Once a suitable project is identified to scope methods to promote CMI as a way residents and institutions can contribute to a new zero carbon and high nature Winchester district

 

References:

  1. The report supported by Bristol: https://baumaninstitute.leeds.ac.uk/research/financing-for-society/
  2. Initial proposed interest rate is 1.2%. See: Your questions answered on Green Community Bonds | Abundance Blog
    https://medium.abundanceinvestment.com/community-municipal-investments-your-questions-answered-25218ed4d2cb
  3. https://medium.abundanceinvestment.com/community-municipal-investments-the-new-option-for-your-low-risk-money-a9cc5d72e03a?source=post_internal_links---------1------------------
  4. These are: Leeds Council, Warrington, and West Berkshire. E.g. Invest now: https://info.westberks.gov.uk/wbcmi; https://www.abundanceinvestment.com/invest-now/warrington-2025
  5. https://eprints.whiterose.ac.uk/175824/1/2021_07_01_CMB-Innovate-UK-Report-Web-2.pdf
  6. https://www.local.gov.uk/publications/financing-green-ambitions

 

 

 

 

Minutes:

In accordance with Council Procedure Rule 15, one motion had been submitted for council.

 

The motion had been submitted by Councillor Lee and was as set out on the agenda.  The motion was seconded by Councillor Wallace and then introduced by Councillor Lee.

 

Council then debated the matters in the motion.  In summary the following points were raised:

 

  • The proposals appeared to commit the council to borrow money and then identify a project to spend it on.
  • The council had used its own resources, grant funding and external finance to deliver various green and carbon projects.  No project had been rejected through the prudential borrowing code due to funding issues.
  • Developing Community Municipal Investments (CMI) was a project in itself that would take time and resource to develop.
  • CMI was supported as a principle and was referred to in the council’s Treasury Management Strategy.
  • Key projects needed to be identified first and then the best and most efficient funding solution sourced.
  • The Public Works Board was likely to offer cheaper funding solutions than crowd funding.
  • Public bonds issuing can be very successful.
  • Running a successful CMI scheme can be expensive. Officer resource would be better utilised elsewhere rather than spent identifying projects that would be best suited for CMI.
  • The council was already successfully delivering ambitious green and carbon projects.
  • In the current context of local government finance, the proposal would not be a top priority.
  • The council still had a long way in its transition to be net zero carbon by 2030 and CMIs were an initiative to accelerate progress.
  • Nine councils were already successfully using CMIs to fund projects.
  • CMIs help engage and involve communities with projects. CMI was a financial investment and social value tool.

 

Following the proposer of the motion (Councillor Lee) exercising his right to respond to debate, council then voted on the motion as set out on the agenda.

 

RESOLVED:

 

That the motion proposed by Councillor Lee (seconded by Councillor Wallace) be not supported.

 

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