Decision Maker: Council, Executive

Outcome: Recommendations approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: September 11, 2025

Purpose: Consideration and potential rectification of the financial issues arising from the review.

Content: The Executive Recommended to Council That (i)    a total amount of £3,841,106 be transferred from the General Fund to the HRA to rectify the Sheerwater Estate Regeneration Project transactions originally charged to the HRA;           (ii)   interest of £649,476 be transferred from the General Fund to ensure the HRA is fully compensated;           (iii)  it be noted that the transfer of the Yellow Phase land remains paused, and a report will be brought back to Executive on the land transfer;           (iv) the total impact on the General Fund of £4.49 million will be funded by an existing legacy risk reserve. This reserve has been established, specifically to manage HRA legacy risks, through the existing Capitalisation Directives provisionally approved by the Government;           (v)  the Strategic Director for Finance should make the necessary changes to the relevant budgets and the associated accounting entries; and           (vi) it be noted that approved Debt Standstill and Cash Sweep arrangements will remain in place to ensure the Council continues to recover surplus cash from ThamesWey Group. Reason: To correct the treatment of historic Sheerwater Estate Regeneration Project transactions that were wrongly charged to the HRA and outline the impact on the HRA reserve balance.