4 November 2025 – Minutes

THAME TOWN COUNCIL

Minutes of a Meeting of the Corporate Governance Committee held on 4 November 2025 at 6.30pm in the Upper Chamber, Thame Town Hall.

Present:

Cllrs D Bretherton, D Dawson (Deputy Mayor), A Dite, M Dyer (Chair), A Gilbert (Town Mayor), S McGarry, H Richards, A Wainwright and W Wilde.

Non Voting

Officers

M Sturdy, Town Clerk
K Slater, Corporate Services Manager & Responsible Financial Officer (RFO)
J Doherty, Committee Services Officer

1)         Apologies for Absence

Apologies for absence received from Cllrs Dodds (personal), Cowell (personal).

Note Cllr Swan unable to access the building therefore not present at the meeting.             

RESOLVED that:

i.          To accept the apologies and reason given from Cllr Dodds (personal) and Cllr Cowell (personal) and Cllr Swan unable to access the building; unable to be present at the meeting.

2)         Declarations of Interest and Dispensations

There were no declarations of interest or dispensations.

3)         Public Participation and Public Questions

There were no applications to address the Committee.
There were no questions put to the Committee.

4)         Minutes

The Minutes of the Committee Meeting held on 5 August 2025 were received.

RESOLVED that:

i.         The minutes of the meeting held on 5 August 2025 are confirmed as a correct record, and signed by the Chair.

5)         Investment Portfolio

Cllr Richards arrived during this agenda item at 6:34pm

Mr Weston-Davies presented the committee with the annual investment portfolio review on behalf of Rathbones. The Town Council’s portfolio service level is discretionary, meaning that Rathbones makes investment decisions in line with the Town Council’s objective of capital growth and a risk strategy level of 2 (out of 6) which is specified in the Investment Policy. The portfolio value is currently £1.838 million as of 28 October 2025 with an estimated annual income of almost £45,000 and estimated yield of 2.5%. Portfolio risk is assessed across liquidity, equity-type risk, and diversifiers, and is continually monitored globally.

Performance in the past year has been strong, the top-level portfolio is healthy, and the portfolio is positive. Political and economic developments are being monitored, market volatility is anticipated during 2026 which Rathbones will continually monitor.

Recognising the importance of responsible investment, Rathbones aims to integrate environmental, social and governance (ESG) principles into the portfolio, as well as using their vote to make changes such as voting against BP remuneration policies. Rathbones also engage in ESG challenges where there will be consequences and are transparent in their activities.

A question was raised about whether higher annual income is due to interest rates. Rathbones confirmed that rising Bank of England rates have allowed the treasury to issue debt with higher coupons. The portfolio’s debt instruments now generate a larger income component, increasing yield without significantly affecting capital.

Rathbones often acquires secondary-market investments (issued 1–2 years prior), benefiting the Council’s portfolio. As interest rates fall, income may reduce slightly. Gold remains a strong investment. US markets and S&P 500 trackers continue to perform well, alongside environmentally focused and major UK funds such as Murray Income. Caution remains in the market due to larger firms such as Amazon reducing staff, and a lack of graduate recruitment, signalling potential economic softening.

A question was raised about whether the FTSE is undervalued and if this drives investment. It may be, as some capital has returned to the UK. However, growth remains concentrated in a few sectors; Defence, Pharmaceuticals, Banks, and Engineering. Key performers include AstraZeneca, the largest FTSE 100 company, and Spirax Group. Broader sector growth would require a stronger UK economy. The US market continues to be led by AI-driven firms, note AstraZeneca is pursuing a dual UK-US Stockmarket listing.

A question was raised about whether Rathbones benchmarks are UK-based. Whilst the FTSE 100 is UK-based, benchmarking is global to align with the portfolio’s composition.

A question was raised on the sale of four of the top five holdings and buying lower performers. Rathbones confirmed this is part of their cautious rebalancing process, taking profits and adjusting timing prudently when managing public funds.

A question was raised about whether AI is becoming a bubble and its potential impact beyond the US. Rathbones acknowledged the risk, noting that excessive capital in AI could reduce returns. While AI remains significant, costs, such as those highlighted by Meta, are rising. There is concern over assumptions about AI’s productivity gains. The US has seen three years of double-digit returns since AI’s rise in 2023, but a fourth year is unlikely, with potential market shifts expected in 2026.

A question was raised to highlight that previously the portfolio summary report was an extended full report. Rathbones will provide extended summary report to follow.

Noted that the revised investment policy has been issued to Rathbones and they believe it aligns with the current portfolio but will review and adjust if needed. Councillors are encouraged to raise any concerns.

A question was raised about sharing information with all Councillors for cross-checking. Rathbones confirmed full transparency and that all information will be shared.

A question was raised about the investment outlook. Rathbones remain confident but expect some market volatility over the next few years, particularly heading into 2026, and will continue to monitor investments closely.

A question was raised about protecting the portfolio from risks linked to climate change and global conflict. Rathbones noted limited exposure to insurance and emphasised their broader approach of encouraging companies to take responsibility and improve climate policies across other portfolios.

A question was raised about changes to the ESG report, noting 40% of investments are “out of scope” which could undermine the rating process. Rathbones explained this includes many UK Green Gilts and bonds from Barclays, iShares, and BlackRock. They will review and issue an extended ESG report with more detail. Positively, renewable infrastructure yielded 9.7%, and the Rathbones Ethical Bond returned 5%, with strong track records despite slight capital pullbacks.

A question was raised about the meaning of out of scope. Rathbones will review this in relation to the MSCI rating.

A question was raised whether £49.9k represents cash growth or cash held. Confirmed this is the estimated income due to TTC.

A question was raised about Rathbones’ management fees. They are invoiced and settled.

A question was raised regarding capital gains tax. Local authorities are exempt.

A question was raised about benchmark reports for town councils’ investment returns and risk levels. Recent benchmarking by RFO for similar-sized councils will be reviewed. It was noted that a review had taken place of similar size councils across 3 counties and they vary widely, many do not invest as do not have funds, some use a higher risk level and some just use high interest bank accounts.   Thame Town Council has investment funds from a land sale. It was noted that OCC invest in various schemes for the Government Pension Scheme monies, generating higher returns.

The Cllrs thanked Mr Weston-Davies for this time.

It was noted positively that all Councillors now have a better understanding of and interest in the investments.

6)         Investment Portfolio Performance Summary

The committee noted the summary of the investment performance.

7)         Financial Update

a)     Budget Summary: The committee received the budget summary, reviewed grants for devolved services noting records have been checked and corrected.
b)    Balance Sheet: The committee noted the balance sheet up to 30 September 2025.
c)     Earmarked Reserves: The committee received and reviewed the latest earmarked reserves noted CIL funds corrected.
d)     Bank reconciliations: The committee received the bank reconciliation along with the detailed supporting reports. It was noted that the Finance Regulations were updated in February 2025. Previously, bank reconciliations were completed only at year-end; however, the updated regulations now require this to be carried out more regularly and submitted for noting at Corporate Governance. Corporate Governance committee will receive the quarterly cash book, including payment dates, amounts, and payees.

8)         Financial Overspends

No overspends; agenda item included in error.

9)         Utilities Update

Report noted.

Note Gas and electricity accounts have been renegotiated. 

Water supplier changed; note a significant usage increase recently. Likely due to Town Hall toilets use during hirings; or increased footfall using the disabled toilet at the Town Hall whilst toilets are out of use at Montesson Square. No leak is suspected, monitoring usage.

10)      Health & Safety Audit

Health and Safety Audit to be completed on 10 November 2025; report to follow.

11)      Banking

Noted that the RFO has begun a review of Thame Town Council bank accounts to find a better interest rate for funds that can be held for 3-12 months, this is to note and to invite any comments or questions now ahead of coming back to this committee with the savings to be advised in due course.

Councillors pleased to receive this update.

12)      Financial Restructure

Work is underway to review Thame Town Council’s software and internal financial processes, aiming for more automation, better reporting, and greater transparency with less reliance on the external accountant. The RFO has collaborated with Councillor Dite, Rialtas, and an experienced RFO.

Councillors welcomed the progress and expressed thanks.

13)      Council Policies

The Insurance Strategy, Work Experience and Members Allowance Scheme policies were presented and had been reviewed in line with updates to legislation, with amends shown in different coloured text.

Officers to review Safeguarding Policy and Safeguarding training requirements for staff and Councillors.

RESOLVED THAT:

i.     To approve the Insurance Strategy.
ii.    To approve the Work Experience Policy.
iii.   To approve the Members Allowance Scheme.

14)      BT Contract

Noted to meet best value practice we are seeking quotations for phone and broadband contact.

15)      Information Management

Training needs for Staff and Councillors discussed; GDPR refresher training to be undertaken; information will be issued. Cyber security awareness and reminders will be issued to Staff and Councillors.

A working group will be established in 2026 to undertake a review of all policies; note there is an additional requirement in 2025/26 AGAR regarding compliance.   

Noting that IT support is in place to assist with security and IT systems. 

16)      S106 Funding Agreement for the Community & Youth Centre

In line with 7.3 of the Scheme of Delegations and Standing Order 20.0 to authorise entering into a funding agreement with South Oxfordshire District Council for £779.246.19 of S106 Funds.

To be paid to Thame Town Council in two parts:

1. £742,344.61 payable in accordance with clause 5 and paragraph 1.1 of Schedule 3.
2. £36,901.58 (plus the indexation amount to be determined under S106 reference 15S32) payable in accordance with clause 5 and paragraph 1.3 of Schedule 3.

This agreement is subject to the approval of the PWL.

RESOLVED THAT:

i.    To Authorise the Signing by two Councillors and sealing of the S106 funding agreement with SODC for the Community & Youth Centre for £779,246.19.

The meeting concluded at 8.04 pm

Signed ………………………………

Chair, 3 February 2026