Agenda item

The Managing Director of Goram Homes presented the Annual Report, including an overview of the financial performance which had been shown to be better than predicted in the 2022-23 forecast.

A Member noted the uncertainty of the market and queried the implication of falling house prices against interest rates remaining high. The Managing Director stated that the business structure allowed for flexible responses to fluidity in the market. Factors were considered on an ongoing basis to support a dynamic position.

A Member noted that the National TOMS (Themes, Outcomes, Measures) Framework had been used to assess Social Value and asked for the individual scores and the proportion of the projects given to Social Value. The Managing Director agreed that the National TOMS scores for individual projects could be provided outside of the public meeting. Social Value would be determined at the point where a delivery partner was sought and selected.

A Member queried the number of homes that had full planning permission. Full planning permission had been granted at the 1 Lockleaze development which comprised around 300 homes. As a relatively new organisation the remainder of the projects were progressing through the planning phase, a number of which required a two-stage planning process. The first homes built by Goram Homes were expected to be available by the end of 2023.

The Chair of the Growth and Regeneration Scrutiny Commission extended an invitation to the Managing Director to the following meeting of the Growth and Regeneration Scrutiny Commission in November 2023 as a planning item was anticipated.

A Member requested a forecast towards profitability for the future as this had previously been available, as well as a narrative on the corporation tax as it was noted that a significant proportion of the improved projections had come from both deferred tax and interest receivable. It was queried why an increase in interest receivable directed to Goram Homes was not matched by an increase in Bristol City Council’s interest receivable. The Finance Director of Goram Homes noted that the interest payable to Bristol City Council was higher than planned, and suggested a separate session outside of public scrutiny to discuss the elements of the financing structure which were commercially sensitive.

A Member noted the work undertaken around the Construction Skills Academy and queried how attendees were targeted. It was clarified that attendees were coordinated by the College of Bristol. The Head of Communications for Goram Homes had worked with Partners in Bristol, a College of Bristol subsidiary, and stated that outreach had taken place with referrals received from local job centres.

The WECA brief for Education and Skills was discussed. The Chief Executive noted there may be work for Officers to consider how to support joined up working between WECA, Bristol City Council and council commissioned entities around education and skills opportunities for groups such as care leavers.

A Member asked if the Skills Academy could be replicated in South Bristol where the College of Bristol and Advanced Construction Hub were based. This was confirmed.

The issue of the selection of locations for projects was raised. Sites were driven by land availability from the council. The Managing Director welcomed suggestions from Members should they become aware of potential sites.

The arrangements around risk and audit were queried. A new Non-Executive Chair of audit and risk had been appointed and the value of this was noted. Work had been undertaken on integrating a performance management system that linked risks, objectives and key performance indicators. It was expected that OSMB would have the opportunity to examine performance more closely with the planned scrutiny of the Goram Homes business plan.

The risk around construction costs was raised. Costs were being assessed as stable but dependent on a number of complex factors. The relationship with national partners supported a comprehensive search for the best price points to drive down cost position. It was also added that local labour was prioritised and more local community led developments were planned.

The Goram Homes representatives were thanked for the report and discussion.

RESOLVED; That OSMB note the Goram Homes report.