Issue details

Letter of Support Year End Accounts 2023/24 - Brick by Brick Croydon Ltd

This report will request the Executive Mayor, in consultation with the Corporate Director of Resources and S151 Officer to enter into a Letter of Comfort to the Directors of Brick by Brick Croydon for a period of 12months from the date of the audit.

Decision type: Key

Reason Key: Expenditure > £1,000,000;

Decision status: Recommendations Approved

Wards affected: (All Wards);

Notice of proposed decision first published: 02/01/2025

This decision will be taken under urgency procedures.

Reason for urgency:
The Chair of Scrutiny & Overview agreed that this decision is exempt from Call-in, on the basis that this decision (a) cannot be reasonable deferred through a call-in request and (b) should be treated as a matter by urgency (as any delay likely to be caused by the call-in process would seriously prejudice the Council’s or public’s interest).

The Council needs to issue the letter of Comfort to the Directors. This was done last year (2022/2023) to assure the Directors that whilst BBB remains insolvent the Council will provide sufficient support to the Company and Directors so not to impact on their Directorship whilst trading insolvently. For 2023/2024, as the company’s wind down process is still ongoing, a similar letter needs to be issues. Officers have undertaken due diligence to ensure issuing this letter of comfort does not pose any further risk to the Council. A call in exemption is required to ensure BBB can submit their accounts to Companies House and HMRC.

Decision due: Not before 31st Jan 2025 by Executive Mayor

Lead member: Executive Mayor

Lead director: Corporate Director of Resources (Section 151)

Department: Resources Directorate

Contact: Huw Rhys-Lewis, Interim Director of Commercial Investment and Capital Email: huw.rhys-lewis@croydon.gov.uk.

Decisions