Issue - meetings

Appendices C and D to the report are contained in the private and confidential section of the agenda as they include information exempt under paragraph 3, Part 1 of Schedule 12A of the Local Government Act 1972.

Further to Minute 98 (12 February 2013), the Cabinet Member for Children’s Services presented a report on funding issues in relation to the preparation works for the permanent site of Riverside Secondary School at Barking Riverside.

The Cabinet Member explained that the site preparation works had been estimated at £5.5m.  It had originally been envisaged that Barking Riverside Limited (BRL), the company established to progress the regeneration of the area and jointly owned by Bellway Homes and the Greater London Authority, would fund the works.  However, the construction of a lower than expected number of dwellings in the area meant that, under the terms of the Section 106 planning agreement for the area, BRL was not presently obliged to fund the works.  It was noted that in order for Riverside Secondary School to be open by September 2015 the construction works would have to start no later than December 2013. 

The Cabinet Member presented four options which related to a ‘do nothing’ approach, delaying the project until such time as BRL were obliged to fund the works, finding an alternative site that would not require front-funding and securing the necessary front-funding.  Each option included the implications for school place provision in the Borough as well as the potential consequences for the £26m funding that had been secured from the Education Funding Agency to meet the cost of construction works, furniture, fixtures and fittings and ICT equipment.

Cabinet agreed:

(i)  To authorise officers to liaise with the Greater London Authority (GLA) in order to obtain front-funding of up to £5.5m for site preparation works to enable the early delivery of the new Secondary and Special Schools at Barking Riverside;

(ii)  Subject to no GLA funding being forthcoming:

(a)  in principle to provide a short-term loan of up to £5.5m to Barking Riverside Limited on the terms set out in the report which do not financially disadvantage the Council, the loan sum to be met from the Council’s Education Funding Allowance; and

(b)  to delegate authority to the Chief Executive, in consultation with the Cabinet Member for Finance, the Head of Legal and Democratic Services and the Divisional Director of Finance, to negotiate and conclude loan terms and complete the necessary legal agreements.