Decision - Local Delivery Vehicle - Update

That the Cabinet Committee:

(1) Notes the attached update report from the PricewaterhouseCoopers (PwC), financial advisors to the LDV project.

(2) Agrees, in light of the PwC update report, to allow an extension to the project timing in relation to funding determination to allow more time for discussions with the banks that have shown an interest.

As the option of private funding has not been fully explored and the discussions with potential funders have not been exhausted, an extension of time is needed to enable these to happen before the Council is in a position to make a decision on the funding options.

(1) Stage 1 of the review of Housing Green Paper options analysed and evaluated alternative options for achieving the council’s corporate priorities and strategic housing objectives within the parameters – set in the light of tenants’ 77% vote against large scale voluntary stock transfer in February 2007 - that there should be no freehold transfer, no RSL involvement or transfer of tenanted stock.

(2)The development and finalisation phase of the proposals has further refined the options available, as set out in reports to HMCC, Cabinet and Council in September and October 2008. 

(3)The option of proceeding to a decision at this stage was considered, but given the advice from PWC it was considered that the discussions with potential funders need more time before the Council is in a position to make a final decision on the funding options. An extension of time was therefore considered the most appropriate course of action in the circumstances..