Decision details

The Cabinet will be asked to consider and recommend to Council, a report on the future of the Barley Homes Group, including an interim business plan and governance arrangements.

RECOMMENDED to SEBC and FHDC COUNCILS

(25 and 26 September 2018 respectively):

(1)     The proposal for Suffolk County Council to transfer its ownership of Barley Homes to the West Suffolk Councils be noted,  and the terms of the deal as set out in paragraph 2.2 of Report No: CAB/JT/18/032, be agreed.

(2)     An additional working capital loan facility of £350,000 funded from the Strategic Priorities and Medium Term Financial Strategy (MTFS) reserves and as set out in section 3.4, be approved.

(3)     A revised total of £7.5 million (currently £6 million) revolving investment facility, be added to the Councils’ capital programme, financed from capital receipts in line with paragraph 3.3.2.

(4)    Delegation be given to the S151 Officer and Monitoring Officer, in consultation with the Portfolio Holders for Resources and Performance and Housing to issue equity and loan funding from the revolving investment facility (set out in (3) above) subject to state aid requirements.

(5)     The S151 Officer and Monitoring Officer, in consultation with the Portfolio Holders for Resources and Performance, be authorised to negotiate and agree the terms of such  loans with Barley Homes and the funding and necessary legal agreements, taking into consideration the Council’s loans policy and state aid requirements.

(6)     Approval of the Interim Business Plan will constitute consent for Barley Homes to issue shares and enter into debt financing, in line with the Business Plan, be noted.

(7)      The Councils’ medium term financial revenue plans in line with section 3.5, be updated.

(8)    The proposed shareholder representative arrangements be agreed, and authority be given for the representatives to make all necessary decisions on behalf of the shareholders as required by the Articles of Association and Shareholder Agreement as set out in paragraphs 5.4 to 5.6.

(9)     The Shareholder Representatives be authorised to make all necessary arrangements for the purchase of the County Council’s shareholding in Barley Homes, and the consequential governance amendments required to the Company’s Articles of Association and Shareholder Agreement, as set out in paragraph 5.2.

(10)   The Shareholder Representatives be authorised to agree the Interim Business Plan contained in Exempt Attachment A of Report No: CAB/JT/18/032, subject to the development of the Town Hall Car Park, Haverhill, being paused to allow for further discussions on the aspirations of the site, and priority to be given to development of the sites at Westfields and Castle Hill.

(11)   It be noted that a comprehensive business case for Barley Homes will be presented to West Suffolk Council in 2019.

(12)   Agreement be given for the Council’s Section 151 Officer to make the necessary changes to the Council’s 2018/19 prudential indicators as a result of Recommendation (3).