Issue - meetings

Report No: CAB/FH/16/054

Portfolio Holder: Sara Mildmay-White (West Suffolk Lead Member for Housing)

Chairman of the Committee: Simon Cole    Lead Officer: Rachael Mann

RECOMMENDED TO COUNCIL: (21 December 2016)

That:-

1.           The five year Business Plan, attached at Exempt Appendix A to Report No: OAS/FH/16/030, be approved.

2.           A £3m revolving investment facility, to be added to the Council’s capital programme, financed from the reallocation of the “Housing Company” pending capital budget of £3m, be approved.

3.           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 2. above) subject to state aid requirements.

4.           The S151 Officer and Monitoring Officer, in consultation with the Portfolio Holder 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.

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

(Report No: CAB/FH/16/054)

Councillor Sara Mildmay-White, West Suffolk Lead Portfolio Holder for Housing, presented this report which explained that the Overview and Scrutiny Committee had scrutinised the content of the Barley Homes initial five year Business Plan. 

The Committee were reminded that the primary function of Barley Homes was to generate profits through the development of new housing for sale and rent, on land owned by one of the Councils, initially in West Suffolk.  The establishment of the Housing Company was one of the many ways that the Council was looking to become self-sufficient through new income generation activities, as Central Government Grants were reduced and eventually removed.

The recommendations from the Overview and Scrutiny Committee were set out in Report No: CAB/FH/16/054 for the Cabinet’s consideration.

Councillor Mildmay-White also expressed her appreciation to the Overview and Scrutiny Committee for its thorough scrutiny of the Business Plan and for its subsequent recommendations.

With the vote being unanimous, it was

RECOMMENDED TO COUNCIL: (21 December 2016)

That:-

1.           The five year Business Plan, attached at Exempt Appendix A to Report No: OAS/FH/16/030, be approved.

2.           A £3m revolving investment facility, to be added to the Council’s capital programme, financed from the reallocation of the “Housing Company” pending capital budget of £3m, be approved.

3.           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 2. above) subject to state aid requirements.

4.           The S151 Officer and Monitoring Officer, in consultation with the Portfolio Holder 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.

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

(Councillor James Waters joined the meeting at 6.10 pm, during the discussion of, and prior to, the voting on this item.  Councillor Millar remained in the Chair).