Decision

OVERVIEW AND SCRUTINY COMMITTEE

TUESDAY 25 MARCH 2025

RESOLUTIONS
 
The following are the
resolutions made by the Overview and Scrutiny Committee at the
above meeting.
 
Please note that these are not
the full minutes, which will be published at a later
date.
 
Date
of resolution: 25 March 2025
 
If you have any queries about
any matters referred to in this notice, please contact: Artemis
Kassi, Head of Scrutiny and Governance (artemis.kassi@newham.gov.uk).
 
Item
5: Call In of Cabinet Decision: Populo Living 2025/2026 Business
Plan
 

i) 
That the decision by Cabinet on 4 March
2025 concerning the Populo Living 2025/2026 Business Plan be
referred back to Cabinet for reconsideration.

 
ii) 
That the reasons for the referral to
Cabinet be noted, as follows:
 

a) 
Five-Year Strategic
Business Plan
A
five-year, strategic business plan to be written by 1 September
2025, which captures all the future risks and reasonable
assumptions within one document including financial, economic and
regulatory risk uncertainty and to include an income and
expenditure account cash flow statement and balance
sheet;

b) 
Moratorium
A
moratorium with immediate effect of all new developments undertaken
by Populo Ltd until a five-year business plan has been
written;
c) 
Sequencing
All
business plans and budgets of all subsidiaries are to be approved
by Cabinet before the main budget-setting February Full
Council;
d) 
Annual review of
assumptions by the Audit Committee
Assumptions
to business plans to be reviewed and commented upon by the Audit
Committee on an annual basis, no later than December 2025. Any
deviations from standard assumptions in cabinet reports are to be
highlighted and approved by Cabinet;

e) 
Forensic
Audit
An audit of
the business plan model is to be undertaken by 1 September 2025 by
a firm of forensic accountants and their report to be presented to
the Audit Committee; and

f) 
Impact of the
Procurement Act

Work to be conducted by 1 July 2025 on
how the Populo Business Plan as currently drafted and the proposals
for a shift to a commissioning model will be impacted by
the Procurement Act 2023. This work is to be
presented to the Audit Committee as soon as practicably
possible.