Decision Maker: Cabinet

Outcome: Decision approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: March 4, 2025

Purpose: Provides an update and seeks approval to Populo Living’s Business Plan for FY25/26 along with associated decisions.  

Content: Decision   For the reasons set out in the report and its appendices Cabinet RESOLVED to Agree:   i)  To approve the Populo Group Business Plan for 2025/26 as set out at Appendix 1.   Alternatives Considered   a)  Populo is required by the Council to produce a Business Plan for each financial year. The Populo Executive team discussed alternatives for this year’s plan with Council officers in November 2024. Were the Council not minded to approve this Business Plan it would leave Populo operating within the parameters of the previously approved Business Plan for 2024/25. b)  As sole shareholder, the Council could have directed the company to continue to pursue a direct development strategy linked to working capital and development / investment loan funding facilities in line with the previous approved plan. This was considered however due to prevailing interest rates this alternative would not have allowed the company to present a deliverable plan for 2025/26 and beyond due to its cost of finance. c)  The Council could opt to scale back Populo to a small housing management company overseeing 795 homes. This was considered however Newham continues to face an affordable housing shortage and Populo provides the Council with an expert team capable of progressing the delivery of complex major regeneration projects. This is considered a valuable commissioning route for the Council hence scaling back the company’s development team was discounted in favour of expanding and increasing the use of Populo for Development Management Services. d)  The Council could procure a Development Management Service from an alternative provider, via a suitable framework. The council continues to test this particular route and undertakes benchmarking with the wider markets to ensure value for money remains by using Populo, as well as maintaining close control. as shown in 6.5 of this report, not recommended e)  Following consideration of the alternatives, the recommended Business Plan strategy balances prevailing development economics with a desire by the Council to continuing to commission Populo to progress major residential development projects across the borough. The Council commissioning Populo allows it to retain close control whilst also benefiting from the skills and expertise in Populo and promoting the sustainability of a Council company.