Review recommends new funding model at Advance Northumberland to free up cash for investment

The regeneration company, established by Northumberland County Council with a remit to improve prosperity, quality of life and increase business activity, underwent a strategic review last year.

New governance arrangements were put in place earlier this year and now the Shareholder Cabinet Committee is looking at options for a future funding model which will enable Advance to continue to successfully support the ongoing economic regeneration of Northumberland.

Council leader Glen Sanderson said: “Advance Northumberland has had many successes to be proud of and this financial review is to ensure it continues to perform well and do even more of the house building and job creation that it is doing now.

“We’ve always been committed to moving forward together with Advance, and with a new board and governance arrangements in place it is in a healthy position.

“We’re now looking at options for a new financial model. It’s in the long-term interest for both the Council and Advance Northumberland to get this done and will ensure the county and everyone who lives or works here will continue to benefit from their work.”

In January, Grant Thornton were commissioned to undertake a strategic review of the corporate and financial structure of Advance Northumberland and its subsidiaries.

The consultancy has recommended that the council consider changes to the company structure and a new funding model to free up cash for investment in the residential and commercial portfolios and increase the overall profitability of the group, allowing Advance Northumberland to pay down outstanding debt over a period of time on an annuity basis.

The report to the Shareholder Cabinet Committee states that further detailed exploration of these recommendations would be required before any definitive proposals could be put before the Committee for approval.

Members are being recommended to give the go-ahead for the council’s executive director of transformation and resources to bring a further report to the committee in due course.

Wholly owned by the county council, Advance Northumberland is the council’s primary regeneration delivery vehicle. It employs a wide range of investment, development and regeneration capabilities to shape places and promote economic growth and prosperity in Northumberland.