Agenda item

The Business Plan document at Appendix 1 to the report is exempt from publication under the provisions of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended), as it contains commercially confidential information and the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

The Cabinet Member for Finance, Performance and Core Services presented the five-year rolling Business Plan of Be First for the period 2020-2025, the Council-owned company launched on 1 October 2017 with the key objective of driving forward the delivery of the Council’s regeneration agenda.

The Cabinet Member drew attention to the main aspects within the Business Plan which covered a review of the last 12 months’ activities, the plans for the year ahead and the medium-term perspective.  Key commitments in the Business Plan included:

·  The delivery of 116 new homes in 2020/21 from four development projects and the commencement of seven new development projects to deliver a further 938 homes up to 2024/25, with an average of 73% affordable housing;

·  A masterplan for Thames Road to include mixed-use residential development and enhanced employment offer;

·  Securing planning permission for and commencing construction of the Film Studios at the former Sanofi site, Dagenham East;

·  Developing a vision for Dagenham Dock that focuses on opportunities from the wholesale markets;

·  Delivering improvements to the look and feel of Barking Station;

·  Attracting a major development partner for Barking Town Centre;

·  Completing a number of strategic masterplans and the Borough Local Plan; and

·  Being on target to exceed its contractual commitment of achieving a surplus of £10.3m by 31 March 2021, which would go towards funding other Council services to the local community.

The Cabinet Member stressed, however, that the Be First Business Plan and the other Business Plans on the agenda had been developed prior to the COVID-19 pandemic and represented the “business as usual” perspective.  It would be necessary, therefore, for the Council and its commercial entities to continually monitor the situation and review plans accordingly.  The Cabinet Member alluded to the risks associated with project delivery and the cost of borrowing highlighted within the report and added that these could be compounded by the restrictions brought about by COVID-19, although he also referred to potential opportunities that may arise.

The Cabinet Member for Regeneration and Social Housing gave an update on a number of the major redevelopment and other projects that Be First were involved with.  Cabinet Members also discussed the merits of Be First’s operating model which had a significant focus on providing housing for all, in line with the Council’s objective of “no one left behind”, and welcomed the opportunity to work with all politicians and particularly the new Labour Party leadership to further the Council’s aspirations.

Cabinet resolved to:

(i)  Approve the Be First Business Plan 2020-2025 at Appendix 1 to the report;

(ii)  Authorise the Chief Operating Officer, in consultation with the Investment Panel, to take all necessary action to enable Be First to carry out its proposals under the Business Plan and to agree any minor variations to  the business plan subject to the conditions in these recommendations;

(iii)  Approve Be First or the Council to enter into any procurement related agreement or commitment required to enable the delivery of the Business Plan subject to compliance with relevant procurement regulation and compliance with State Aid rules;

(iv)  Agree that if Be First enter into contractual arrangements described in the Business Plan and the report, the Council shall give a guarantee to the Contractor under such contract guaranteeing performance of the contract by Be First subject to Be First being satisfied that the Contractor is able to perform the Contract and all necessary due diligence being undertaken;

(v)  Authorise the Chief Operating Officer to enter into any such guarantee and any necessary documents to give effect to the contractual arrangements so described, subject to the above conditions and the advice of the Director of Law and Governance;

(vi)  Agree to vary the existing loan facility as outlined in the report subject to the existing conditions relating to it; and

(vii)  Authorise the Chief Operating Officer, in consultation with the Investment Panel, to grant loans, any other relevant approvals on behalf of the Council which may be relevant or required for the specific project and complete all necessary documents and negotiations to complete the projects set out in the Business Plan, subject to all necessary due diligence and compliance with State Aid law, the Public Contracts Regulations 2015 (or any replacement thereof) and the Council’s Constitution.