Decision details


Decision Maker: Cabinet

Decision status: For Determination

Is Key decision?: Yes

Is subject to call in?: Yes


Housing Gateway Ltd Business Plan


Cllr Tim Leaver (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources, seeking approval for the business plan for Housing Gateway Limited (HGL) for the year 2024/25. HGL was showing a strong financial performance and an operating profit.


In response to Members’ queries regarding HGL’s assistance to the Council in reducing temporary accommodation costs, it was advised that it saved the Council around £5m each year. The portfolio of homes was also an asset which gained value year on year. The ambition was to add 130 more homes this financial year.


DECISION:  The Cabinet agreed to:


I. Approve the HGL Business Plan for delivery in 2024/25.


II. Delegate authority to the Executive Director of Resources to enter into a new borrowing facility agreement with HGL of up to £29.4m to finance planned capital spend in 2024/25 and refinance £3.9m of properties purchased by HGL but not yet financed by borrowing.


III. Delegate authority to Executive Director (Resources) to refinance the existing loans to HGL (i.e. revise the existing loan agreements) to ensure that loan repayments from HGL are fully reflective of Council borrowing costs.


IV. Delegate authority to the Executive Director (Resources) to enter into a working capital facility with HGL for up to £2m.


The report sets out the options considered, if any, and the reasons for the recommendations and the decision.

Report author: Ravi Lakhani

Publication date: 05/07/2024

Date of decision: 12/06/2024

Decided at meeting: 12/06/2024 - Cabinet

Effective from: 22/06/2024

Accompanying Documents: