Referral of the proposed subsidy to Barking and Dagenham Reside Weavers LLP by the London Borough of Barking and Dagenham Council
The Subsidy Advice Unit (SAU) has published a report providing advice to the London Borough of Barking and Dagenham Council (LBBD Council) concerning its proposed subsidy to Barking and Dagenham Reside Weavers LLP (B&D Reside).
Administrative timetable
| Date | Action |
|---|---|
| 27 November 2024 | SAU’s report published |
| 31 October 2024 | Deadline for receipt of any third-party submissions (submissions after 5pm on this date may not be taken into account) |
| 17 October 2024 | Beginning of reporting period |
Final report
27 November 2024: The SAU has published its report providing advice to LBBD Council concerning the proposed subsidy to B&D Reside. The report sets out the SAU’s evaluation of LBBD Council’s Assessment of Compliance of its proposed subsidy to B&D Reside with the requirements set out in the Subsidy Control Act 2022.
- Final report (27.11.24)
Request from LBBD Council
17 October 2024: The SAU has accepted a request for a report from LBBD Council concerning the proposed subsidy to B&D Reside. This request relates to a Subsidy of Particular Interest.
The SAU will prepare a report, which will provide an evaluation of LBBD Council’s assessment of whether the subsidy complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.
Information about the subsidy provided by LBBD Council
LBBD Council proposes to award a subsidy to B&D Reside.
The proposed subsidy aims to meet the policy objective to ‘increase the affordable housing supply within the London Borough of Barking and Dagenham to overcome the market failure of under provision and deliver associated social equity benefits’.
The subsidy is derived from the provision of a low interest loan to the beneficiary enabling the beneficiary to lease the homes from the Council and ensure their effective management. The difference between what B&D Reside will pay to LBBD Council for the low-interest loan and what B&D Reside would have had to pay to another institution in the commercial market results in a subsidy with an estimated value of £299,745,740. Given that the proposed subsidy exceeds £10,000,000, it qualifies as a ‘Subsidy and Scheme of Particular Interest’ (SSoPI) under the UK Subsidy Control Regime.
Within this proposed subsidy are a collection of housing developments that have either been completed since 4 January 2023, or will be completed by 31 January 2025. There is a clear market failure and equity rational for supporting this much needed affordable housing in the borough. Mechanisms included in the lease and loan structure ensure that any profit accrued by the beneficiary will be returned to the Council by way of rental payments or a future variation of the interest rate.
Information for third parties
If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the subsidy to B&D Reside, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Please send your submissions to the public authority: [email protected].
Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).
Notes to third parties wishing to make a submission
The SAU will only take your submission into account if it can be shared with LBBD Council. The SAU will send a copy of your submission to LBBD Council together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to grant or modify the subsidy or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with LBBD Council using the email address provided above.
The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.
For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit.
Contacts
- CMA press team: 020 3738 6460 or [email protected]
Updates to this page
Published 18 October 2024Last updated 27 November 2024 + show all updates
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Final report published.
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First published.