Agenda item

Appendix A to the report is exempt from publication as it contains commercially confidential information (exempt under paragraph 3, Part 1, Schedule 12A of the Local Government Act 1972 (as amended)).

The Cabinet Member for Finance, Performance and Core Services introduced a report on the Barking and Dagenham Trading Partnership (BDTP) Interim Business Plan for 2021-24.

The Cabinet Member advised that, due to the COVID-19 pandemic, the Interim Business Plan only covered a three-year period, instead of the typical five, and set out where the business currently stood with regards to operational delivery and financial performance, and the actions that need to be taken to put the Company back on track to achieve the objectives set out in the Shareholder Agreement.  A detailed budget for the 2021/22 financial year was included in the Plan, along with forecasts of projected returns for the following two years, and it was noted that the current year projections would be updated at the end of September 2021 and a revised three-year plan covering the periods 2022/23, 2023/24 and 2024/25 would be presented for approval before the end of the current financial year.

The Cabinet Member stressed the importance of BDTP securing new work / contracts to ensure a sustainable future in a post COVID-19 environment, due to the direct impact on Borough residents of the services it provided and the fact that many local residents worked for the partnership.  BDTP had recognised the need to develop a Service Improvement Plan (SIP) for BD Services and a thorough review of the infrastructure required to support all areas of Group activity.

Cabinet resolved to:

(i)  Approve the BDTP Interim Business Plan 2021-24 at Appendix A to the report, subject to the conditions set out below; and:

(ii)  Authorise the Council’s Managing Director, in consultation with the Shareholder Panel, to:

(a)  Approve the outcome of the Service Improvement Plan, including the approval of any contractual variations required as a result of that programme;

(b)  Approve the request for the Council to issue up to £5m for working capital loan and agree all loan documentation or any documentation required to approve the utilisation of funds from the realisation of profit at LEUK, subject to due diligence and ensuring there is no breach of subsidy;

(c)  Approve expenditure of £1.6m to remove any backlog repairs works and allocate the remainder of the £3.5m business improvement investment;

(d)  Take all necessary action to enable BDTP to carry out its proposals as set out within the Business Plan, except those reserved by these recommendations, and to agree any variations to the business plan.

(Standing Order 7.1 (Part 2, Chapter 3, of the Council Constitution) was suspended at this juncture to enable the meeting to continue beyond the two-hour threshold.)