Agenda item

To consider the attached report on the future of Lancashire Management Operations Limited.

The Shareholder Committee considered a report on the recommendations of the Blackpool Housing Company Limited Board and the Lancashire Management Operations Limited Board regarding the transfer of the lease for the Tramshed student accommodation in Preston to Blackpool Housing Company Limited.

The report was presented to the Committee by Mr Mark Towers, Group Company Secretary. Mr Towers explained some of the history behind the acquisition of the Tramshed providing student accommodation in Preston as an out of borough investment under the Council’s Growth and Prosperity Programme. Mr Towers then explained the current and long term forecast position of Lancashire Management Operations, explaining that this meant that there was assurance that the development would be operated in a sustainable way and could now be assimilated into one of the Council companies to be managed. The current set-up had become disproportionate for the governance required for the lease. Blackpool Housing Company Board had agreed to the transfer of the Tramshed to the Company at its meeting on 22 February 2022 and the Lancashire Management Operations Board had similarly agreed to the transfer on 8 February 2022.

Ms Kirsten Whyatt, Finance Manager, explained that the Council’s finance team would continue to provide support to the company during its transition until the completion of the audit for 2021/22. She further explained that the staff resources available from Blackpool Housing Company Limited would ensure continued good financial stewardship and governance.

The Shareholder Committee endorsed the course of action noting the support of the companies involved and that it had always been intended that the governance structures would be reviewed after the company had been within the Council’s ownership for a number of years and its position had been stabilised.

Shareholder Committee decision:

Reason for the decision:

The Shareholder Committee considered that the Tramshed had been operating in a sustainable way and could now be assimilated into one of the Council companies to be managed. It agreed that the current set-up is disproportionate for the governance required for the lease The arrangement does not require a separate company to be in place and once transferred should not be too resource intensive for Blackpool Housing Company. The Committee also noted that this course of action had been approved by the Board of Lancashire Management Operations Limited and Blackpool Housing Company Limited.

Other options considered:

The Committee considered retaining the company in its stand-alone current state.  However it agreed that the governance and management required would not be proportionate for a stand-alone company. It also noted that there were experienced officers in Blackpool Housing Company who could add a more tailored resource than is currently applied to oversee the contract with the managing agent.

Date of decision:

18 March 2022

(Ms Katie Rourke, Company Secretariat Manager, left the meeting at this point).