Decision details

KENT COUNTY COUNCIL

RECORD OF DECISION

DECISION TAKEN BY

Cabinet

14 January 2008

DECISION NO.

08/01122

6.       The Case for establishing a Credit Union for Kent

(Item 7 – Report by Mr Keith Ferrin, Cabinet Member for Environment, Highways and Waste; Mr Roger Gough, Cabinet Member for Regeneration and Supporting Independence and Mr Adam Wilkinson, Managing Director of Environment and Regeneration)

(1)       The report outlined the following action plan to investigate the potential and develop a proposal to take forward the establishment of a Kent Credit Union.

(a)       a feasibility study be commissioned at approximately £20K to provide full detail including key elements, based on guidance from ABCUL. The key outputs would be:

o       an assessment of the options for Common Bonds within Kent with appropriate recommendations

o       an assessment of the Staffing And Resource implications of the proposed options

o       Financial Projections drawn up, based on the above, that can be used as a basis for aiding the decision-making for credit union development in the area

o       production of a written report which will assist any subsequent development of a Regulatory Business Plan needed for authorisation by the FSA.

(b)       following the feasibility stage, production of a full regulatory business plan would require appointment of key, experienced staff to drive the process, therefore the appointment of a Credit Union Development Manager would be expected to cost approximately £50K for one year;

(c)        support staff and operation budget to fund to full business planning completion would be estimated at £30K.  This would be expected to include recruitment costs, professional/regulatory fees, advertising and promotion and initial volunteer and staff training costs;

(d)       this level of finance would provide only initial feasibility and business planning and the full costs to set up a Credit Union for Kent were expected to be in the region of £500K consideration would need to be given as part of feasibility and planning to how these funds would be raised to ensure the Credit Union would have sufficient initial capital to ensure future sustainability; and

(2)       After detailed discussions Cabinet RESOLVED that £100K for a full feasibility study to be commissioned, under the guidance of the Cabinet Members Steering Group, and to allow development of a complete and full business plan for the establishment of a Credit Union for Kent via the appointment of a Credit Union Development Manager and supporting staff for one year.

Background Documents: 

.........................................................................

     signed

       date  21 January 2008

      Chief Executive

FOR COUNCIL SECRETARIAT USE ONLY

Decision Referred to Cabinet Scrutiny

Cabinet Scrutiny Decision to Refer Back for Reconsideration

Reconsideration Record Sheet Issued

Reconsideration of Decision Published

YES

NO

YES

NO

YES

NO

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