Issue - meetings

Recommendation

That the Executive note the urgent decision taken by the Executive Member for Finance on 21 July 2025 and note that the decision was urgent in order to allow cashflow headroom and allow the company time for sales to be received over the next few months. Additional loan headroom was required to ensure Brierley Homes could make all payments due in the event of some delayed sales.

Considered – A report of the Corporate Director Resources providing details of the urgent decision taken by the Executive Member for Finance and Resources to approve additional loan facility to Brierley Homes of £1.4m to enable the provision of affordable homes.  The decision was urgent in order to allow cashflow headroom in advance of sales being made over the next few months to enable payments to be made to suppliers.

The Corporate Director Resources, Gary Fielding, reported that whilst Brierley Homes had originally been established to deliver market housing it was now delivering more affordable and social housing and as a consequence its loan facility was inadequate.  The company paid the council interest above the Bank of England base rate, so delivered significant shareholder value to the council, whilst also delivering affordable housing in excess of policy requirements, so providing additional benefit.  It was confirmed that the additional £1.4m loan was at base rate without interest, thus enabling the policy value of the affordable homes to be realised.  The urgency had arisen due to a number of sales having fallen through in the preceding weeks, leading to a risk that suppliers wouldn’t get paid.  A further report would be brought to the next meeting of the Executive following a review of funding arrangements and cash flow management.

Resolved

That the Executive note the urgent decision taken by the Executive Member for Finance on 21 July 2025 and note that the decision was urgent in order to allow cashflow headroom and allow the company time for sales to be received over the next few months. Additional loan headroom was required to ensure Brierley Homes could make all payments due in the event of some delayed sales.

Reasons for Recommendation

To report the urgent decision taken on the 21 July 2025 to Executive in line with the Council’s governance process.

Alternative options considered

There are no other options as this report is informing Executive of an urgent decision that has been taken.