Decision

Decision:

1. To note the outstanding interest and penalty interest of £518,309 (Five hundred and eighteen thousand, three hundred and nine pounds) due from North Downs Housing (NDH) to Guildford Borough Council (GBC) in respect of the loan used to acquire 70 residential properties;
2. To note the request for NDH to make a one-off payment of £518,309 (Five hundred and eighteen thousand, three hundred and nine pounds) by 30th September 2026 to clear the outstanding interest owed; and
3. In the event that NDH is unable to make such payment within the timeframe, the Joint Strategic Director for Finance and Resources is authorised to negotiate and agree a repayment plan with NDH.

Reason(s):

1. NDH's financial performance has significantly improved in the year ending 31 March 2025, evidenced by healthy cash reserves, net assets, and profitability. This makes a direct payment of the outstanding interest a viable option.
2. The GBC commissioned review of NDH's future strategy is a critical factor in determining the most appropriate long-term solution. Any action taken now should align with the Council's broader objectives for NDH.

Other options considered and rejected by the Executive:

None.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.