London Borough of Barnet, Subsidy to the TBG Open Door Homes Limited

This was a subsidy to the TBG Open Door Homes Limited for roughly £25 million. This will be used for the acquisition of properties from the residential resale market to increase the supply of affordable homes within the London Borough of Barnet.

Our key takeaways from the Subsidy Advice Unit (SAU) report are:

• Assessments should provide the rationale behind choosing mix methods of funding, including what the areas will be using which funding and how each element contributes the overall viability of the programme.
• Detail should be included on how the beneficiary was selected.
• Assessments should clearly describe the policy objective as it relates to the wider policy context. Then a balancing exercise of the positive and negative benefits relating to the policy objective should be undertaken.
• Explanations should be included on whether the subsidy is for the provision of subsidy of particular interest (SPEI) services. If it is, then detail should be provided on:
  • how the subsidy complies with the SPEI requirements in the Subsidy Control Act 2022;
  • whether the relevant contracts will be published; and
  • what reviews will be undertaken.
• Explanation should be included on whether there are necessary clawback provisions in place for the funding agreements and if they provide for the subsidy to be limited to the minimum necessary.

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