Purpose

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

Decision

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.