Issue - meetings

RESOLVED: The Shareholder Committee reviewed the financial performance of the Councils Wholly Owned Company, West Norfolk Housing Company Ltd for the financial year ended 31^st March 2025.

REASON FOR DECISION: To ensure West Norfolk Housing Company Ltd financial performance is deemed appropriate and assess the going concern of the company.

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The Assistant Director for Finance and Deputy Section 151 Officer presented the report.

The Chair thanked Officers for the report and invited questions and comments from the Committee.

Councillor Ring inquired about the legal requirements for property revaluation and if this included all the housing stock or only part. 

The Assistant Director for Finance and Deputy Section 151 Officer explained an annual revaluation was possible, however a 3–5-year cycle was recommended, with independent professionals categorising properties and conducting desk-based asset reviews. He added the process involved unit-based calculations and referenced geographical location was taken into consideration.

In response to the Chair, Councillor Beales, the Housing Development Manager clarified previous large grants were for property acquisition, while the current year's grant related to providing temporary accommodation at Broad Street, which was leased from the Council and not intended for company acquisition due to tenure complexities.

The Chair, Councillor Beales referenced £39 billion announced in the budget for Social Housing and sought further clarification whilst outlining the frustration of Members, that this funding had not been seen for use locally.

The Housing Development Manager explained the detail of this funding had not yet been received by Homes England however confirmed it was expected imminently and highlighted there was also another round of Local Authority Housing Funding (LAHF).

The Chair, Councillor Beales asked for further detail on the change in interest and financing cost.

In response, it was explained by the Housing Development Manager and the Deputy Chief Executive and Section 151 Officer that the significant change in interest and financing costs stemmed from a deed of variation correcting an error in the original loan agreement regarding fixed versus variable interest rates. It was explained further the correction was backdated, resulting in a one-off adjustment, and future loans will have fixed rates at drawdown.

Councillor Ring referred to page 36 and sought clarification on Corporation Tax in relation to 2025.

The Deputy Chief Executive and Section 151 Officer explained that the company aims to minimise corporation tax through group offsets. She agreed to investigate and clarify the computation, noting a contradiction between creditors and debtors highlighting that it appeared corporation tax was receivable in that period.

The Board requested Officers to confirm the reason for the absence of a corporation tax figure in the 2025 accounts and clarify the apparent contradiction between creditors and debtors regarding corporation tax receivable. Additionally, the Board requested a detailed written explanation of the correction to the loan agreement and its impact on interest and financing costs.

RESOLVED: The Shareholder Committee reviewed the financial performance of the Councils Wholly Owned Company, West Norfolk Housing Company Ltd for the financial year ended 31^st March 2025.