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Kent County Council is expected to take steps to be more open about its trading companies, in the face of continuing concerns about its extensive business activities.
A cross-party group of county councillors has recommended companies within KCC’s burgeoning commercial services department publish their accounts "as a gesture of greater openness about the council’s trading activities."
County councillors are also being asked to consider whether KCC should offer support services, such as payroll, to private businesses in the county at no-profit.
It also recommends the creation of a cross-party group to monitor the council’s trading companies and to examine the case for new ones.
The proposals are outlined in a report due to be discussed by councillors on June 30 and come against long-standing complaints from some businesses that they are being harmed by KCC’s growing commercial activities.
KCC’s Conservative administration has firmly denied claims it is under-cutting other businesses through cross-subsidies and maintains that external auditors have given its trading activities a clean bill of health.
Much of the criticism has focused on Kent Top Travel and Kent Top Temps, independent companies set up by the county council. KCC has defended its commercial businesses, saying that this year, they are expected to make £6million - money that helps to keep the council tax down.
Nevertheless, the moves towards more openness will be seen as a recognition that KCC needs to do more to overcome the widespread unease within some parts of the business community about its extensive commercial operations.
The report recommends that "commercial services should be encouraged to post accounts for medium-sized companies as a gesture for greater openness about the council’s trading activities".
On the issue of support for other businesses, it states: "The council’s ability to support external private companies...within Kent should be promoted."
The measures were given a cautious welcome by Mike Richardson of Kings Hill Recruitment and a member of lobby group "Hands Off Kent Business."
"Any contribution to transparency and acknowledgement that they need to be more open is welcome."