Decision details

To approve a grant over 6 years of £198,333 per year to Leeds Credit Union which will be linked to greater lending targets.

Further to Minute No. 61, 21^st October 2015, the Director of Communities and Environment submitted a report which provided an update on the Council’s strategic approach towards supporting the work of Leeds Credit Union (LCU) in tackling financial exclusion and poverty in Leeds, and which detailed proposals to further develop the longer term strategic partnership between the Council and the LCU.

Members highlighted the valuable role which continued to be played by the Leeds Credit Union across the city.

In considering the submitted report and in response to a Member’s specific request, agreement was provided that, separate to the Executive’s consideration of this matter today, the relevant Scrutiny Board would be asked to review the contents of the submitted Executive Board report and any related financial information regarding the LCU, as part of the Council’s longstanding partnership role.

Responding to a Member’s enquiry, confirmation was received that having sought specific legal advice, the proposals detailed within the submitted report did not violate any EU State Aid Regulations.

RESOLVED –

(a)  That, separate to the Executive’s consideration of this matter today, the relevant Scrutiny Board be asked to review the contents of the submitted Executive Board report and any related financial information regarding the LCU;

(b)  That the significant progress which has been made and the projects developed through the partnership between the Council and Leeds Credit Union, be noted and welcomed;

(c)  That the provision to Leeds Credit Union of a grant over 6 years of £198,333 per year, that is linked to greater lending targets and membership levels of Leeds residents, be approved;

(d)  That the necessary authority be delegated to the Director of Communities and Environment, in consultation with the Chief Officer Financial Services, to enable the Director to negotiate and enter into a grant agreement with Leeds Credit Union;

(e)  That agreement be given for the amount of interest payable by Leeds Credit Union on its existing loan from the Council to be reduced, in line with the details as set out within the submitted report.

Discussion, consultation with various relevant officers from across the Council

Executive Board Member for Communities, Finance, Legal, Housing, Leeds Credit Union