Decision details

At its meeting of 15 January 2024, Cabinet resolved to support the proposals for a funding arrangement for the council’s housing companies. This recommendation was agreed by full Council on 7 February 2024.

A drawdown facility (comprising a mix of loan facilities and repayable grant agreements) was to be made available for the companies to consider with an overall lending cap of £50 million.

Delegated authority was given to the Executive Director (Place), in consultation with the Portfolio Holder for Business, the Section 151 Officer and the Monitoring Officer to agree the final terms of the Drawdown facility with the Companies.

During scrutiny of the proposal at the Corporate Performance Panel, it was recommended to Cabinet the involvement of the Shareholder Committee in discussions on the Council Companies financing. The Portfolio Holder for Business gave assurances that this would be the case.

In readiness of being asked to exercise this delegation, the meeting of the Shareholder Committee was to conduct a detailed examination of the arrangements for the financing of the companies to ensure all councillors were satisfied with the terms of the proposed arrangements and had further opportunity to raise any residual questions they may have. Further such meetings may be required to fully inform councillors.

Representatives from Grant Thornton attended the meeting and presented their report. 

Under standing order 34 Councillors Ryves, Dark and Rust sought clarification on a number of issues which were responded to by Officers, Members of the Shareholder Committee and the representatives from Grant Thornton. 

Members of the Committee sought responses to questions from officers and Grant Thornton representatives. 

It was agreed that if there were any further questions or points of clarification to be asked that they be submitted to officers, collated and if necessary, a further session be arranged with Grant Thornton to provide responses.

RESOLVED: 1)       That the presentation of the financial advice provided from Grant Thornton be noted.

2)       That any further questions on the financial element be put in writing and if required a further meeting with Grant Thornton be added to the work programme to seek responses to the questions.

Reason for Decision

To enable all Councillors to raise any residual questions on the funding arrangements for the Council’s Housing Companies, and to assist the Shareholder Committee to agree in due course, the maximum interest at which funding would be affordable, both for the Council and the Companies.