Agenda item

To consider the implications of the proposal for the merger of Severn Vale Housing Society with Bromford/Merlin Housing Society and to agree an effective process to proceed whilst ensuring the Council’s interests are protected.

97.1           The report of the Chief Executive, circulated at Pages No. 99-109, set out the implications of Severn Vale Housing Society’s proposal to merge with two other housing providers and recommended a way forward for the Council. Members were asked to formally approve the merger with the Bromford/Merlin Group, subject to the approval of the merger by the Severn Vale Housing Society Board, and the satisfactory completion, prior to the merger being completed, of an agreement(s) in respect of all matters of retained interest to the Council; to formally advise Severn Vale Housing Society that, on completion of the matters referred to (or upon the coming into effect of the Social Housing (Influence of Local Authorities) (England) Regulations 2017), the Council will agree to give up its shareholder role and Board representation nomination rights; and to delegate authority to the Chief Executive, in consultation with the Leader, Deputy Leader and Lead Members for Built Environment and Health and Wellbeing, to complete all necessary documentation and agreements to implement the resolutions.

97.2           The Chief Executive advised that Members had previously received a presentation from Severn Vale Housing Society and Bromford Housing in respect of the merger. In summary, the Severn Vale Housing Society Board had looked at all of the options and had felt that collaboration with another housing provider would improve both its strategic capacity and neighbourhoods for the people of the Borough; having looked at potential partners it was proposed to move forward with Bromford and Merlin under the Bromford ‘banner’. The report also addressed the issues concerning the relationship between Tewkesbury Borough Council and Severn Vale Housing Society in respect of the loss of the Council’s representative on the Board. The new organisation had indicated that it was committed to developing more affordable housing in the Borough, and also working with JCS partners, which was great news. The issues regarding the stock transfer were quite technical in nature as it was a complicated legal agreement but this would be comprehensively addressed before any agreements were signed.

97.3           Upon being proposed and seconded, it was

                  RESOLVED          1.  That the Council formally approves the merger of Severn                                         Vale Housing Society with Bromford/Merlin Group subject                                        to:

a)      the approval of the merger by the Severn Vale Housing Society Board; and

b)      the satisfactory completion, prior to the merger being completed, of an agreement(s) in respect of all matters of retained interest to the Council. 

2.   That Severn Vale Housing Society formally be advised that, on completion of the matters referred to in recommendation 1 (or upon the coming into effect of the Social Housing (Influence of Local Authorities) (England) Regulations 2017), the Council will agree to give up its shareholder role and Board representation nomination rights.

3.   That authority be delegated to the Chief Executive, in consultation with the Leader, Deputy Leader and Lead Members for Built Environment and Health and Wellbeing, to complete all necessary documentation and agreements to implement the above-mentioned resolutions.

97.4           The Mayor thanked the representatives from Severn Vale Housing Society for attending the meeting and for the comprehensive briefing provided to Members.