Decision
Analysis
outcome: The Cabinet Member for Resources has approved the use of the capital budget and the Council's Commercial Income Risk Reserve to support Aequus Group in implementing its Sustain Plan.
summary: The decision involves using the existing approved capital budget to fund costs for a proposed site development by Aequus via the LLP.
topline: The Cabinet Member for Resources has decided to provide financial support to Aequus Group for a proposed site development at Bath Quays North.
reason_contentious: This issue may be contentious as it involves financial support to a private company for housing delivery, which could raise questions about the use of public funds and potential conflicts of interest.
affected_stakeholders: ["Aequus Group", "Council's Commercial Income Risk Reserve", "Priority housing delivery stakeholders"]
contentiousness_score: 5
political_party_relevance: There are no explicit mentions or implications of political parties in the decision.
URL: https://democracy.bathnes.gov.uk/ieDecisionDetails.aspx?ID=2480
Decision Maker: Cabinet Member for Resources
Outcome:
Is Key Decision?: Yes
Is Callable In?: Yes
Purpose: Amendment of the Working Capital Loan facility provided by the Council to Aequus Construction Ltd varying the terms of the loan. This is to progress business plan activity on sites outside the Council’s ownership within B&NES.
Content: The Cabinet Member for Finance and Resources is asked to: Note the use of the existing approved Bath Quays North capital budget to fund costs of £156,333 directly attributable to the proposed site development incurred to date by Aequus via the LLP. The 2027/28 Budget will need to be uplifted by an equivalent amount, funded by a receipt from Aequus when these costs are transferred back to them once the land transfer and the development business case are approved. Note the approved use of the Council’s Commercial Income Risk Reserve of £181,677 under delegated authority by the S151 officer who has consulted with the Cabinet Member for Resources and the Chief Executive. Delegate to the S.151 officer in consultation with the monitoring officer the provision of a Deed of indemnity from the Council to the Board of Directors of Aequus Construction Ltd. Delegate to the S151 Officer in consultation with the monitoring officer the provision of a letter of financial support from the Council to Aequus to support the going concern assessment of Aequus as requested by the company’s external auditors. The decision provides short-term financial assurance to sustain Aequus Group while it implements its Sustain Plan in response to market pressures, delayed development and reduced cashflow. The time-limited indemnity and related measures support priority housing delivery, including affordable and social rented homes at Bath Quays North, protect directors from personal liability, support the going concern assessment, and allow the Council to review Aequus’ future role, governance and financial sustainability. None None
Date of Decision: July 27, 2026