Council at risk over £51m loan to housing company

Financial risk from a council-owned housing company that has been loaned £51.7m could fall back on the local authority, officers have warned.

Slough Borough Council set up James Elliman Homes (JEH) in 2017 to buy properties to provide affordable housing for the rental market and in 2024 it owned 168 homes worth about £55m.

The loan is due to be paid back to the council in 2028 and 2029 but it is likely to be done through the sale of current JEH properties, according to the Local Democracy Reporting Service.

The council's best value finance commissioner, Denise Murray, said the council's culture "needs to change" to fix the issues with JEH.

She said: "You have multiple reports and recommendations [about James Elliman Homes], but we're still in the position where decisions haven't been made, and actions haven't been taken.

"There has to be a culture that focuses on delivering, reporting on the progress made and to ensure that we remain on track."

She told a cabinet committee meeting that if changes are not properly made, there are financial risks that will "fall back" on the council.

It was told that an external review will look into JEH and report in February with a potential long-term business plan.

Sarah Wilson, the council's assistant director for legal and governance, said the council needs to take "collective ownership".

"[JEH] is loss-making… [There] is quite a lot of work to be done – fundamentally we're not clear what the company is there for," she said.

"This isn't a quick fix; there isn't a quick fix for something like this."

The council's leader Dexter Smith said JEH has "paid little attention" to its initial business plan.

"That has put the council in a position of financial exposure… We now have to make sure that we secure the return of that money," he added.