Millions lost by Norwich City Council housing firm 'shameful'
Carli Harper, cabinet member for finance and major projects, said there would be "a full scrutiny and audit review" of what happened with the company.Founded as Norwich Regeneration Limited in 2015, the company was supposed to develop private housing projects to raise income for the council, while also providing some affordable homes.But some of its developments struggled and in 2020 it emerged £6m was lost when homes in Bowthorpe were sold for less than they cost to build.
With the company close to collapse last year, consultants 31Ten were commissioned to review the financial risk posed to the council.The BBC has seen the report from October 2024, which found that objectives for the firm "were not clear" or "clearly linked to key performance indicators nor regularly tracked".It said it was "critical" for the shareholder panel – set-up to oversee the business – to meet regularly, but it had not done so for months.The consultants also found that the four Lion Homes employees also worked in the council's housing delivery team and warned that could "lead to a perception of conflict of interest".They also said the firm had built up loses of £5.72m over a number of years, while the council had invested £3.42m in it and provided a loan of £6.15m, which has since been written off.
A separate report from accountants Grant Thornton said liquidating the company and its assets could recoup the council £4.5m.Alex Catt, who leads the council's opposition Green group, said concerns raised by his party about how the firm was run "had been completely ignored"."It's frankly just a mess," he said."It's lacked basic governance, any accountability, any sort of purpose and was going forward on the basis of financial calculations that were completely wrong."Harper said selling Lion Homes' assets "will help us to significantly reduce any outstanding debt" and insisted the council was "always transparent about finances".She said other housing companies had faced the same problems of "spiralling borrowing costs and a hostile planning system" and that the council would develop housing projects itself, instead of using a private firm."Bringing Lion Homes in-house… ensures the council continues to deliver the housing Norwich needs in a more transparent, accountable way," she said.
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This isn't about hate – it's about fairness, safety, and respect for the people who actually live here. The High Court ruling is a rare moment where local voices have finally been heard, and many feel it's long overdue. RFA They are asylum seekers, not migrants They are asylum seekers and cannot be called migrants. I have seen some people in hotels where they seem lost. What they need is a place to sleep and be able to eat their nation's dishes, and hotels are not aware of what food they eat. On top of that, hotels hire people who speak their language to learn their taste. If they can buy stuff themselves, that will reduce costs for government considerably. Once their case is finalised, they can start work and won't be a burden to government. TotiCalling The far-right create the problems they rail against So, right-wingers who voted in a right-wing party to stop asylum seekers being housed in run-down empty homes across the country that locals didn't want to live in, and house them in hotels instead, have won a victory against the policy they created. It's endless. The far-right create a problem, then rail against it, then by their actions create a new problem that they then blame on others and rail against that. If the UK stops accepting asylum seekers, which is what the anti-immigrant groups want, countries that border conflict zones may also reject their international obligation, leading to many times more asylum seekers heading to the UK where they will just go underground and untracked. It could also potentially damage our relationships with trading partners that do take asylum seekers and undermine our moral position that supports our global trading and strategic interests. But hey, why look at potential problems when you can raise a pitchfork and kick off. BrotherChe Farage is stirring up the crisis Professional agitator Farage is stirring up the crisis for political gain! Reform has NO policies but 'stop the boats' – a problem Labour inherited from the Tories. However, it seems the right-wing media are pushing Farage and Reform as they are the party of the establishment, who would deregulate Britain – only an advantage for the richest few. The small boats crisis also, as giving Farage a single-issue rhetoric, masks the large legal migration that happened under the TORIES – and we are not told how large it is now! Mintman Questionable judgement A questionable judgement. It says to local communities if you don't want these asylum hotels/refugees in your communities, you can protest on the grounds it might make it unsafe for your children on their way home from school, and you get the council to shut them down. You just have to make a fuss on behalf of your children. chrish Playing a very dangerous game The left-wing political establishment is playing a very dangerous game, bringing people into the country in this way and planting them in the middle of settled communities – and at great expense. The political establishment might think they are provoking the far-right, but in reality they are provoking ordinary people, many of whom have fallen on hard times. If they carry on like this, it could get very ugly. Mark Reform don't do solutions I see Reform claiming credit for this judgement. I don't see any practical solutions from Reform as to how to tackle this problem. In fact, it seems Reform don't do solutions. While the number of asylum seekers held in hotels etc is now one for Labour to solve, it should be remembered who was responsible for this backlog to build – the last government. JRiley Immigration is here to stay Some people blame Tony Blair for embracing a policy of high immigration. However, the truth is that during the Blair years, net migration was generally small but increased to between 200,000 and 300,000 per year in 2004 (Migration Policy Institute). However, in the post-Brexit years net migration rose to between 600,000 to 900,000 per year (ONS). The UK is a rapidly ageing country and cannot function without immigrants. So, immigration is here to stay and people should be grateful for that, especially pensioners and those on benefits, because immigrants pay taxes that allow the government to pay pensions and benefits. Pomerol95 Kicking the can down the road So the far-right start to riot, and their targets are punished and moved away? Makes sense. I'd rather we get rid of the far-right that are ruining the town. Good job on kicking the can down the road a bit. Bobertson If you don't like immigration, don't cheer invasions A large proportion of recent asylum seekers come from countries like Iraq, Afghanistan, Syria, Libya – all countries which have been reduced to ruin by invasions which most of these people enthusiastically supported. If you don't like immigration, don't vote for people like Tony Blair or Lord Snooty Cameron, don't cheer on "Our Boys" when they go rampaging around the world! envious Safe routes are needed Genuine refugees need SAFE routes that the last Tory government took away, and a reintroduction of such routes would probably eliminate the small boats problem. Christopher1959
