Public Works Loan
In the business plan for the Cock Inn to become a community-owned pub, Stocking Pelham Parish Council explain how the rental income generated by the pub will be used to make annual loan repayments to the Public Works Loan Board and to accumulate a contingency fund.
It is important that the parish council also provides assurance of loan affordability in the case of a 'what if' scenario; that the required income is not generated and that the contingency fund is insufficient to cover a shortfall in income.
Although these circumstances are very unlikely, residents need to be aware that Stocking Pelham Parish Council may have no choice but to consider increasing the precept budget by 300% (from £2000 to £8,000, for example), which would be approximately equivalent to an additional £75 a year on a Band D dwelling.
Stocking Pelham Parish Council has applied to the Ministry for Housing, Communities and Local Government for authority to borrow up to £600,000 to purchase 'The Cock 'public house as an Asset of Community Value and to complete the building works so that the pub can re-open for business with a tenant-occupier. This followed robust consultation of parishioners.
The application was agreed by resolution of the full council on 22nd March 2018 and the Business Case was approved at a SPPC meeting on 22nd November 2018. The borrowing period of 30 years was agreed at a meeting on 11th December 2018.