Swindon councillors gave unanimous support to what had been a Labour motion, but which became a cross-party motion when seconded by group leader Councillor Gary Sumner to create the fund using cash receipts expected by the council from the sales of houses in Wichelstowe, where the council is a partner in the development consortium.
The idea is that the huge sum of money, which should start coming in to the council in about four to five years, would be invested rather than spent.
The interest the investment makes can be used for projects around the borough – or some of the capital can be used if the project will make a financial return back to the fund.
This should mean the fund remains the same or grows, meaning it can be used to fund projects for a long time to come.
An example previously given to the local democracy reporter by council leader Jim Robbins was using the fund to pay for the installation of more solar panels on the roofs of houses.
The money paid to the council from selling the energy to the national grid would go back to the fund until it was fully restored, while residents would benefit from much lower energy bills, and a cut in carbon emissions.
Introducing the motion, Councillor Mike Davies said: “We are a wealthy town but nor yet a town which fully benefits from its wealth.
“There is a better way. Cities like Hamburg, Copenhagen and Singapore have used municipal wealth funds to unlock growth reduce pressure on services and make strategic investment to improve residents’ lives.
“The time has come for Swindon to join that number.”
His motion calls for a report within the next year on how best to proceed.
While he supported the motion, Conservative Councillor Dale Heenan said there was no rush.
He said: “There will be no income form the Wichelstowe Joint venture in the next three years. It will probably not produce any by the time of the next elections in four years’ time. We have time to get this right.”
Leader of the council, Councillor Jim Robbins said this could be a new model for the way the council used its money: “For too long councils have been forced into short-term thinking and selling off assets.
“This fund provides a long-term benefit to residents.
“We build a fund that generates stable revenue, helps protect the council from volatility, allows investment without increasing debt, and supports projects that might otherwise not get off the ground.”
