The Cabinet Committee met on Thursday 27 June 2024 to discuss the progress of BexleyCo Limited's 10-year Business Plan. The committee noted the progress made against the plan, the updated dividend position, and the updated risk register.

BexleyCo Limited Business Plan 2023 to 2033 Update

The committee received an update on the progress of BexleyCo Limited's 10-year Business Plan. Jeremy Stibbe, Chairman of BexleyCo, presented the update, highlighting that while progress has been steady, challenges remain in the planning process and with site viability, which impacts the delivery of affordable homes. Construction inflation has stabilised but build costs remain high, and sales values have declined from their 2022/23 peak, with a slower sales rate. However, there is optimism for market improvement later in the year and into 2025.

The update included details on current development sites. Construction of 30 one and two-bedroom apartments at West Street, Erith is on track for completion by April 2025. Demolition of the old Sidcup Library building has begun, with construction of 32 one, two, and three-bedroom apartments scheduled for completion by the end of 2025. Six potential new council sites have also been identified.

The forecast development profit for identified projects has decreased by £0.696m compared to the Business Plan, a reduction of just over 1%, attributed to increased costs and reduced sales values. The total forecast profit is £0.448m lower than initially projected, which will affect expected dividends for the Council.

The following resolutions were carried without dissent:

• The progress by BexleyCo Limited against their approved Business Plan was noted.
• The updated position on dividends in Section 6 of the covering report was noted.
• The updated risk register was noted.

The meeting was attended by Councillor Baroness O'Neill of Bexley OBE (Chairman), Mr David Leaf (Leader of the Council/Cabinet Member for Resources & Transformation), and Councillor Cafer Munur (Cabinet Member for Place Shaping). Also present were Jeremy Stibbe (Chairman, BexleyCo), Graham Ward (Managing Director, BexleyCo), and Susan Smyth (Director of Finance, BexleyCo).

The minutes of the meeting held on 9 November 2023 were agreed as a correct record, and no declarations of interest were made. The Cabinet Committee rose at 8.15pm.