To provide information in respect of the council’s contractual arrangements with Balfour Beatty Living Places and update Cabinet on progress made following recommendations made by its external auditors in the Auditor’s Annual Report for the year ended 31 March 2022.

Cabinet members considered a report to provide information in respect of the Council’s contractual arrangements with Balfour Beatty Living Places and update Cabinet on progress made following recommendations made by its external auditor in the Auditor’s annual report for the year ending 31 March 2022. 

The Cabinet member for Roads and Regulatory Services introduced the report, the principal points were raised.

The external auditors recommended that the Council establish the validity and contractual trading of BBLP.  External legal advice confirmed that the Council were not exposed and the contract was not invalidated by BBLP arrangements. 

BBLP company secretary has confirmed that BBLP has an active company status and makes returns as a dormant company under the Companies Act.  Further legal advice confirmed that the dormant company status was not unusual.

Confirmed that the parent company guarantee is in place within the public realm contract, the risks are recorded and monitored through the department risk register and reviewed monthly.

The Council have undertaken a fundamental review of the arrangements and confirmed these are legally compliant. 

There were no points raised by Cabinet members regarding the report.  

Group leaders gave the views of their groups. Noted this is a legal point and concerns over the BBLP contract will be covered in the next item.  It was noted as frustrating that it took Auditors some time to notice this point and requested that the reports for Cabinet follow the same format. 

In response to queries it was confirmed that clarification would be obtained from officers as to why the report does not include the environmental impact section. 

It was unanimously resolved that;

(a)        Notes the contractual arrangements in respect of the council’s public realm contract with Balfour Beatty Living Places Limited and its agency company status; and

(b)        Notes the recommendations made by external auditors in respect of this arrangement and the actions taken by the council in response.