Major milestone reached for county’s economic future

The penultimate step to transfer Northumberland County Council’s development arm to its successor has been agreed.

The council’s cabinet has agreed for the assets, liabilities and trading operations of Arch to be transferred over to Advance Northumberland on Tuesday 13 November, subject to County Council approval on 7 November.

The cabinet agreed they would recommend that full council approve the purchase of £3.3m of additional shares in the new organisation to fund Arch’s subsidiary companies.

A further £0.9m of extra Advance shares will also be bought by the authority, subject to full council approval, to enable Advance to buy Arch’s trade and assets at a nominal value.

This investment will be returned to the council via a dividend payment once Arch is dissolved so the net payment will be nil.

Councillor Nick Oliver, Cabinet Member for Corporate Services, welcomed the news that the transfer to the new company was just weeks away.

He said: “I’m delighted we’ve approved these final arrangements which will allow us to transfer the business of Arch over to Advance Northumberland.

“We’re taking everything that was good about Arch, while ensuring all the new governance and performance management arrangements are in place, to provide assurances that what’s gone before won’t be repeated.

“This represents a new start for the new company which will be committed to improving prosperity and delivering positive change to the people of Northumberland, generating investment and encouraging business growth in the county.

“As the only arms-length regeneration company in the North of the Tyne area with a broad skill base, we’re confident Advance Northumberland has a bright and positive future, and will play a key role in the wider regeneration of the region.”

Final approval will be sought from County Council on Wednesday 7 November 2018.