BCP Council has released the second part of its investigation into FuturePlaces, the council-owned regeneration company that was recently closed.
The report, which will be discussed at the Audit and Governance Committee meeting today (6 November), focuses on the council’s oversight of the company, key findings, and recommendations for the future.
FuturePlaces operated under two loan agreements. The first, signed in January 2022, allowed borrowing up to £400,000 at 0.6% interest. A second agreement in August 2022 replaced it, increasing the total loan facility to £8 million.
The investigation found that interest charges were understated by between £15,638 and £22,278, depending on how the loan execution date is interpreted.
It also confirmed an office rental deal worth £71,550 was made in August 2022 with Hinton Road Investment Ltd, a company owned by the former council leader, Drew Mellor. The report notes that he purchased the company for £1 but took on its liabilities.
According to the findings, FuturePlaces’ total expenditure reached £7,205,442, while its income from the council and grants totalled £4,828,984, leaving trading losses of £2,376,458.
Staff salaries, including bonuses, amounted to £1,319,976 over three years.
Councillors are expected to review the full financial details and recommendations from the report at the committee meeting.
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