THE Daily Echo has obtained copies of all the written correspondence between the council and government over the scrapped plans to sell off the seafront’s beach huts to fund transformation.
As reported, BCP Council chiefs spent months working on plans to create a special purpose vehicle – a wholly or majority owned entity which would have borrowed money from the council to buy the huts for around £50million.
The money from this transaction would then have been used to plug a big gap in the local authority’s transformation of services budget.
However, government ministers kiboshed the proposal as they decided it was against the spirit of the flexible use of capital receipts regulations.
The Department for Levelling Up, Housing and Communities took action to change the specific details on the regulations to prevent councils from doing what BCP Council wanted to do.
Over many months councillors and residents have sought to gain more information from the council on the now defunct proposal but getting specific details proved challenging, with three reports from financial services firm KPMG only being released to all members and the public after the plan was binned.
The Daily Echo has now obtained all written correspondence between BCP Council and DLHUC on the beach hut SPV scheme through a Freedom of Information request.
Read more: Council and government exchanged just NINE emails on collapsed beach hut plan
Below you can read the emails and in full along with links to three letters sent by ministers, all listed in chronological order.
April 14 – Adam Richens, BCP Council’s director of finance, to two DLUHC civil servants.
Subject: BCP Council - Flexible Use of Capital Receipts
(attachment Budget and Medium Term Financial Plan MTFP 202223 20012022 09022022 Cabinet.pdf)
Suzanne/Matthew
Thank you for your time this afternoon.
As promised please find attached a link to our February 2022 Council meeting which presented as item 142 our 2022/23 Budget (I also attached a pdf of the report just in case).
https://democracy.bcpcouncil.gov.uk/ieListDocuments.aspx?CId=284&MId=4812&Ver=4
Section 56 to 86 of the report is the Councils Efficiency Statement as required under the previous Flexible Use of Capital Receipts Regulations with section 70 to 80 setting out the approach to generating a capital receipt from the sale of our beach huts.
Also, as promised, I will forward the report from KPMG in due course once I have been back to them and obtained their permission to release.
As stated I would be grateful for an early heads up if this is likely to cause you a concern.
Regards
Adam
April 26– Adam Richens to two DLUHC civil servants
Subject: BCP Council - Flexible Use of Capital Receipts
(attachments KPMG Transmittal Letter.docx and KPMG report- Potential commercial structures for Beach Hut commercialisation 090322.pdf)
KPMG report- Potential commercial structures for Beach Hut commercialisation 090322.pdf
Suzanne/Matthew
Further to my previous Email, and as promised.
Please find attached a letter in respect of the basis on which the KPMG Report is being shared and the report itself.
Regards
Adam
June 12 – Adam Richens to Matt Hemsley, head of Local Government Capital and Accounting, Local Government Finance Directorate
Subject: BCP & FUCR & Beach Huts
Matt
Just wondered if you had chance for a quick call to reflect on the Council's response to our conversation last week.
Our Leader has spoken to our local MP ( Conor Burns) who in turn has spoken to Michael Gove who promised to look into the matter.
Our Leader I believe is looking to send Gove a short explanatory note which I will share if a copy is shared with me.
Just want to ensure you are sighted and not taken by surprise.
Regards
Adam
June 13 – Matt Hemsley to Adam Richens
Subject: BCP & FUCR & Beach Huts
Adam,
Thanks very much for your email. I’m aware of the communications, but I don’t have a readout from ministers yet. Perhaps we can have a call when I have a steer?
Many thanks
Kind regards
Matt
June 16 – Adam Richens to Matt Hemsley
Subject: BCP & FUCR & Beach Huts
Matt
Conscious that BCP are progressing at pace towards the production of a report to our July Cabinet on this matter, and I have an update with colleagues later today at which they will be pressing me for an update, just wondered if you had managed to obtain a steer from ministers yet?
Regards and thanks.
Adam
June 16 – Matt Hemsley to Adam Richens
Adam,
Good morning. Apologies, I think Catherine is/was going to get in touch but I can briefly give you an update. Minister Badenoch will be sending a letter to the Council Leader setting out that the proposed use of the direction is not in line with government’s intent, but recognising that it isn’t actually prohibited by the wording. However, we are going to look at the wording of the direction and potentially reissue to put further safeguards around its use. I’m very happy to discuss.
Kind regards
Matt
June 16 – Letter: Minister Kemi Badenoch MP to Cllr Drew Mellor
June 19 – Adam Richens to Matt Hemsley
Subject: BCP Council Beach Huts
Matt
Just a quick question - when do you think the minister will reply to the Beach Hut Association / Councillor who raised the original enquiry?
Regards
Adam
July 19 – Graham Farrant, BCP Council chief executive, to DLUHC civil servant
Subject: Article
Borrowing option in works for BCP Council £50m funding gap | Bournemouth Echo
Graham
July 29 – Sally Kuspisz, private secretary to the Minister of State, Paul Scully MP, to Cllr Drew Mellor, with Graham Farrant, Adam Richens and civil servants CC’d.
Subject: Correspondence from Minister Scully
(attachment 220729 Paul Scully MP to Cllr Drew Mellor.pdf)
Dear Cllr Mellor,
Following your meeting earlier today, please find attached a letter from Minister Scully.
Best wishes,
Sally
July 29 – Letter: Minister Paul Scully MP to Cllr Drew Mellor
Paul Scully to Cllr Drew Mellor.pdf
August 1 – Letter: Secretary of State Greg Clark MP to all council leaders
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