The Shareholder Committee of Ealing Council was scheduled to discuss the closure and wind-down of two of the council's wholly owned housing development companies, Broadway Living Ltd (BL) and Broadway Living Registered Provider Ltd (BLRP). The committee was also due to approve the minutes from its previous meeting.

Closure and Wind-Down of Broadway Living and Broadway Living RP

The primary item scheduled for discussion was the proposed closure and wind-down of Broadway Living Ltd (BL) and Broadway Living Registered Provider Ltd (BLRP). These companies were established to accelerate the delivery of affordable housing in the borough. However, recent external reviews indicated that they are no longer financially sustainable as standalone entities due to challenges such as rising construction costs, increased interest rates, and the insolvency of BLRP's main contractor.

The report pack outlined a recommended approach to facilitate an orderly wind-down. This involves transferring all homes and assets of BLRP and BL directly into the council's ownership, specifically its Housing Revenue Account (HRA). This measure is intended to ensure no loss of affordable housing and to protect tenants' rights. Following these transfers, the companies would be wound up through a Members' Voluntary Liquidation (MVL).

The report detailed that independent reviews by Campbell Tickell and Grant Thornton had concluded that continuing operations unchanged was not a viable option, and a full council-funded bailout was deemed unviable. The preferred scenario, supported by these reviews, was the transfer of assets to the council followed by liquidation. This approach aims to absorb the financial shortfall by writing off inter-company debt not covered by asset value, thereby protecting tenants and keeping homes within the borough's ownership, while avoiding an uncontrolled collapse. An alternative scenario of selling assets to a third party was considered but rejected due to potential financial losses and the loss of council influence over affordable homes.

The recommendations put forward for the Shareholder Committee's consideration included:

• Providing shareholder consent for the transfer of the entire business of BLRP and BL to the council.
• Providing shareholder consent for the sale of all properties owned by BLRP to the council, at valuation.
• Providing shareholder consent for the sale of all properties owned by BL, either to the council or a third party, at valuation.
• Noting that a further report might be presented if shareholder resolutions are required to support the boards in making a solvency statement prior to the MVL.
• Granting delegated authority to the Strategic Director of Economy & Sustainability, Peter George, to make decisions on behalf of the shareholder regarding the transactions and eventual wind-down.

The report highlighted that this approach is recommended for reasons of financial prudence, to safeguard tenants and homes, retain strategic control over housing assets, and improve governance and efficiency by eliminating separate company structures. The financial impact of this proposal includes a projected debt and equity write-off of £6.550m, with outstanding debt balances detailed for various sites. The report also noted potential financial risks, including the repayment of GLA grants and the accrual of further capitalised interest depending on the timing of asset transfers.

Minutes of the Previous Meeting

The committee was also scheduled to approve the minutes of the meeting held on 11 March 2026. The minutes from that meeting indicated that the committee had approved the appointment of Jennifer Peters and Tamara Quinn as Directors for Greener Ealing Ltd. Additionally, the committee had resolved to enter a closed session to discuss and resolve matters relating to exempt appendices concerning the Greener Ealing Limited Business Plan for Financial Year 2026/27 and the Shareholder Report for Q3 2025/26. The minutes also recorded a resolution to approve a contract variation.