Page 1

2014 – 2018


Bournville Village Trust Business Plan 2014 - 2018

Business Plan

Table of Contents

Page No.





Our Vision and Corporate Aims



Our Priorities and Key Projects



Our Risks



Our People and Our Structures





Appendix A

Our Progress against Previous Objectives


Appendix B

How It All Fits Together


Appendix C

Financial Forecasts


Base Assumptions


Current Financial Projections


In 1900 George Cadbury founded the Bournville Village Trust (BVT), a charitable organisation set up to ensure the planned development and maintenance of the Estate and to preserve it for future generations. The Deed of Foundation ensured that surplus income was devoted to the improvement of the Bournville Estate and the encouragement of better building elsewhere. The founding of BVT signalled a change from merely a building estate into a complete village community. Shops, places of worship, open spaces, sports facilities, community buildings and schools were included to form the heart of the new model village. Over one hundred years on, the Trust continues to allocate George Cadbury homes to people in the greatest housing need to live in our mixed communities. The estate now comprises 1,000 acres of land with almost 8,000 homes, ranging from one-bedroom flats to five-bedroom houses, split just about equally between tenanted and owner-occupied. BVT remains at the forefront of housing provision for architectural design, estate management and development. By keeping sustainability (environmental, social and economic) at the forefront of our thinking, BVT has gained the reputation of being a model estate whilst remaining committed to keeping faith with our Founder’s aims. Our responsibilities are diverse and whilst our core activities reflect our status as a housing association, we embrace a wide range of roles that support the original aims of the Trust and help make BVT the unique organisation it has always been: 

The provision of housing management and repairs services to general needs rented accommodation; shared ownership homes; and a leasehold scheme for older people.

The provision of sheltered, residential care and nursing accommodation for older people and supported housing and care services for special needs groups – in particular for young people leaving care and for people with learning difficulties.

The long-term maintenance of the overall amenities and appearance of the Bournville Estate which comprises 1000 acres of land and almost 8,000 households in south west Birmingham.

Bournville Almshouse Trust, which owns almost 100 almshouses, flats and houses, run by the same 12 Trustees as BVT.

A subsidiary, Bournville Works Housing Society, which owns 314 homes on the Bournville Estate. Management and maintenance of this stock is undertaken by the Trust under the terms of an Intra Group Services Agreement.

In terms of developing new homes our main focus is on: 

The creation of an urban village of over 1,000 new homes at Lightmoor in Telford, Shropshire. 3

Bournville Village Trust Business Plan 2014 - 2018


At Lawley, in Telford, providing rented and shared ownership housing and taking lead responsibility for estate management or stewardship services to a mixed-tenure new village, growing to 3,000 properties by 2027, in partnership with Sanctuary Housing Group.

A new care village for Bournville on the old Bournville College site (College Green). The first phase will be a large Extra Care project to provide 212 apartments, including some for rent through BVT, with a range of fantastic facilities. This project is in partnership with Extracare Charitable Trust and Birmingham City Council.

The running of two major direct labour organisations: 

Bournville Propertycare Services (BPS) providing a top quality repairs service to our housing stock in Birmingham and Shropshire in addition to work undertaken for other clients.

Bournville Village Landscapes (BVL) providing a top quality landscaping service to the Bournville Estate on behalf of the Trust.

Outside of our core housing association activities: 

Responsibility for overseeing the maintenance of the external fabric of Bournville Infant and Junior Schools.

An in-house Architects Team (Bournville Architects) which undertakes a wide variety of architectural work on behalf of the Trust and a range of external clients.

The running of Selly Manor Museum located in the heart of the Bournville Village Conservation Area. Selly Manor itself dates back to at least 1327 whilst an adjacent building, Minworth Greaves, is even older. The whole site is a very attractive visitor destination, which gives people the opportunity to learn about the Tudor way of life.

The Bournville Experience – a hands-on visitor attraction, run jointly with Cadbury World, offering a variety of exhibits about the development of Bournville Village. Entry to the Bournville Experience is free of charge.

The running of an Agricultural Estate comprising over 2,500 acres on the southwestern edge of Birmingham.

The Trust owns a number of Community Halls and Shops which are let on commercial leases. A Community Services Team is dedicated to ensuring that the communities in which we work are well served with a range of facilities and that they are flourishing places where people will choose to live.

Strong business support services covering the Business Improvement Unit, financial and human resources administration plus information technology support.

Our Vision Bournville Village Trust has a very long history that is steeped in a reputation for high quality housing and estate management services. Sustaining this level of quality is never easy and the environment we work in is constantly changing. To continue to thrive as a housing organisation over the next five years and beyond, we must continually look ahead, understand the trends and respond to the external factors that will shape our organisation and our customers’ needs and expectations in the future and move swiftly to prepare for what is to come. Our vision and corporate aims create a long-term destination for our organisation and provides us with a framework for our “Journey to Excellence”, guiding every aspect of our work by describing what it is we are trying to accomplish.

To create and sustain flourishing communities where people choose to live. Our Corporate Aims In order to achieve our vision, we have a clear set of corporate aims that support this ideal and which the entire organisation continues to work towards with the development of new and innovative projects. 

To deliver high quality, customer focused housing, maintenance and estate management services.

To work with residents and partner agencies to develop successful and sustainable communities.

To communicate effectively with all our customers.

To deliver bespoke services to our vulnerable residents.

To develop and promote new business initiatives to enable future growth.

To invest in our people.

To deliver value for money and efficiency in all of our services.

To celebrate our heritage and use it as a platform to promote BVT.


Bournville Village Trust Business Plan 2014 - 2018

Our Vision & Corporate Aims

Our Priorities & Key Projects To deliver high quality, customer focused housing, maintenance and estate management services. Our primary aim is to provide good quality, affordable housing, maintenance and estate management services to people both in housing need and to our communities as a whole. This involves a wide range of activities from processing applications, recovering rent arrears, managing anti-social behaviour and repairs programmes to resident involvement and organising important community events. As The new BPS van liveries part of this, we must ensure our housing stock and estates are well maintained and in good condition. This means providing our residents with a high quality, fast and efficient repairs service; delivering improvement programmes to keep our properties up-to-date and warm and comfortable to live in; and providing and maintaining an environment which is a safe and attractive place to live. Our priorities and some key projects in delivering high quality, customer focused housing, maintenance and estate management services for 2014 to 2018 are: 

To continue to work towards mitigating the impact of the Welfare Benefit Reforms through the delivery of our Anti-Poverty Strategy.

Now we are in our new offices we aim to complete the sale of the former Estate Office on Oak Tree Lane and let the former Bournville Area Office and Sycamore House on Sycamore Road.

Raise the profile of the Shenley shopping area in order to ensure the area is sustainable for our local communities.

Carry out a Condition Survey of the estate infrastructure with a view to planning future renewal programmes.

To continue to achieve the Decent Homes Standard and improve our SAP rating by continuing our commitment to our 30 Year Planned Maintenance plan for BVT and BWHS.

Building and sustaining successful communities is a collaborative effort and requires the input of not only ourselves and our residents but several other partner agencies. This is a fine balance and whilst we continue to develop our new homes and communities in Shropshire, we continue to invest in our established communities in Birmingham and elsewhere, by looking for opportunities to improve our working relationships with our stakeholders. Resident involvement is the name most housing organisations give to all the activities undertaken that help them understand what their residents need and want, and that enable residents to influence, challenge and scrutinise the services they receive. Over the past few years, there has been increasing government emphasis on choice, accountability and localism. These common themes have led to the development of a co-regulation approach which BVT have adopted through the introduction of our cross tenure Scrutiny Panel made up of tenants, freeholders and leaseholders. This is supported by a robust resident involvement framework that provides residents with the opportunity to get involved with specific service areas and to have a real input in the decisions that affect them and their wider communities. Our priorities and some key projects in terms of working with residents and partner agencies for 2014 to 2018 are: 

Review our Resident Involvement Framework in order to ensure we are engaging with our residents in the most effective way.


To progress the Shenley Feasibility Study which will help us support our local communities by providing appropriate services in those areas.


Residents attending our 2013 Better Living Exhibition

To continue progressing our green initiatives including exploring the possibility of an Ecodemonstration Project at Lightmoor. 7

Bournville Village Trust Business Plan 2014 - 2018

To work with residents and partner agencies to develop successful and sustainable communities.

To communicate effectively with all our customers.

Effective communication is always a challenge and we continue to work hard in ensuring that good communication is at the heart of providing the very best in customer service. In practical terms, this could mean the way in which we communicate with our customers over the telephone, in our letters and emails, during visits or it could mean the contents of the publications in our newsletters or on our website. To provide good customer service we need to understand what our customers want and how they feel about the services provided Members of our Customer Services Team to them. This means we need to share information with them and listen carefully to what they are saying. Equally, our customers need to understand what we are telling them and what it is we are able to do for them. Communicating effectively with our customers is essential to the successful delivery of all our projects and services and remains a long term key priority for the organisation. Our priorities and some key communication projects for 2014 to 2018 are: 

To develop a Digital Inclusion Strategy that will help to support our customers online.

Begin to use our customer satisfaction data that has been collected using the operatives’ Personal Digital Assistant (PDA) system as a way of improving our services.

Carry out a review of the current BVT website in order to ensure it is customer focused and easy to use.

To continue to work with the Customer Services Team ensuring that as many queries as possible are answered at the first point of contact.

Carry out a review of all current communications, including our standard letters in order to ensure the content is current and appropriate to our customers’ needs.

Our services are delivered to a wide range of people including those who could be considered vulnerable. We recognise that we have a responsibility to ensure that the vulnerable and socially excluded are protected and are able to access those services. We make continuous efforts when dealing with our more vulnerable residents to ensure they can access our services by putting processes in place that are Concept art-work for the gardens in the extra-care scheme at sensitive to individual needs and College Green provide adequate opportunities to access support networks when necessary. Many of our current projects are looking to address the specific needs of our more vulnerable residents and we are fully aware of our responsibilities in terms of the provision of support and ensuring their ability to access not only our services but third party provision also. Our priorities and some key projects for delivering bespoke services to our vulnerable residents for 2014 to 2018 are: 

To promote Selly Wood House.

To develop a Home Care Service that is available for all residents in order to help residents to stay in their homes for as long as possible.

To implement BVT’s Dementia Action Plan in order to promote a dementia friendly community in Birmingham and Telford.

To progress the College Green development towards its 2015 completion, providing a brand new Care Village for Bournville.


Bournville Village Trust Business Plan 2014 - 2018

To deliver bespoke services to our vulnerable residents.

To develop and promote new business initiatives to enable future growth.

Every sector is in a constant state of change and the Housing Sector is no different. In order for our organisation to remain at the forefront in terms of delivering high quality housing and a range of services, we must continually look ahead, understand the needs of our customers and provide services that are value for money, all whilst safeguarding our history and our excellent reputation in the sector. It is for this reason and the need to draw in external income in a difficult economic climate, that a strategic decision was made to begin identifying gaps in our service delivery and explore opportunities for new business initiatives within our commercial arms, namely Bournville Propertycare Services (BPS) and Bournville Architects. The unique work carried out by both teams has helped secure the organisation’s reputation as a lead service provider and helps to underpin and deliver our commitment to good quality distinctive design. Bournville Architects in particular makes an important contribution to our work on environmental sustainability and has been doing so throughout most of the long history of BVT. Our priorities and some key projects in the development of new business initiatives for 2014 to 2018 are: 

To explore the promotion and marketing of BVT’s stewardship services on a consultancy basis to other large new developments.

To work towards possible input into the development of the Selly Oak Hospital site.

To move day to day electrical works in house.

To showcase Bournville Propertycare Services as a beacon DLO and arrange site visits from other housing associations.

Steve Rose, Head of Contracting Services and Steve Fellows, Head of Asset Management winning two awards with the CITB including ‘CITB Apprenticeship National Employer of the Year’ for Bournville PropertyCare Services.

Employ a Professional Fundraiser post within BVT to help bring in funding to support our projects.

We believe that the continued success of our organisation depends on the continued commitment and productivity of our staff. People are our most important asset, an investment that needs to be cultivated and properly managed. We recognise that investing in staff has an impact in many different ways. It reduces staff turnover and sickness absence and investments in employee engagement programmes, training, mentoring, support, communication, healthcare incentives and technology all have a positive effect on our workforce performance and productivity. In 2013, we were awarded ‘Apprenticeship National Employer of the Year’ by the Construction Industry Training Board. Gerard Finnegan, 'Apprentice Carpenter of the Year' receiving his award from CITB and South Birmingham College

An organisation as varied as ours also boasts a wide range of job types, from plumber, carpenter, electrician and gas fitter to care workers, administration staff and architects, all of whom work with different requirements and risks on a day to day basis. We continue to invest in staff training, health and safety and staff support and a number of key projects and priorities will be implemented for 2014 – 2018: 

Carry out a twelve month review of the Customer Services Team which will include updated training and personal development plans.

Implement auto-enrolment ensuring that all qualifying staff are included on a pension scheme unless they opt out. 

Carry out improvements and energy efficiency works to the Five Gates Depot, Willow Road, 


Provide additional office accommodation and a staff room at Cherry Tree House, Lightmoor Village.

Bournville Village Trust Business Plan 2014 - 2018

To invest in our people.

To deliver value for money and efficiency in all of our services.

These are difficult economic times for everyone and constrained public spending coupled with the general economic downturn, means that organisations such as ourselves and other service providers are under pressure to deliver value for money and efficiencies in all that we do. We do have some advantages over other housing organisations which mean we are better placed than many others to navigate our way through these more difficult times but the challenge is clear. Providing efficient services that are value Dame Elizabeth Hall on Oak Tree Lane, Bournville for money for our residents is a key priority for our organisation and we work continuously to ensure we are as cost effective as possible. Many of our current projects are looking to address the value for money and efficiency agendas and some key projects for 2014 – 2018 are: 

To develop a Social Value model for BVT to use and apply to all our key projects.

To implement an Asset Management Plan for our Community Halls.

Introduce a new self-assessment model to identify efficiencies and areas for improvement.

Work towards providing a more efficient IT Helpdesk service.

Roll out Microsoft Office 2010 for all staff in order to ensure a consistent approach across all our offices.

Modernise Bournville Village Landscapes and develop a new Risk Assessment model for that part of our Organisation.

Selly Manor dates back to the 1300s. Court rolls of 1327 first mention it as Bournbrook’s manor house, home to local tax collectors the Jouette family. In 1907, busy establishing his vision of a Bournville Village, George Cadbury secured its future by transferring it to the heart of Bournville and establishing the museum as a cornerstone in the heritage of the village and in the work of Bournville Village Trust. Today, more than 7,000 schoolchildren visit Selly Manor every year, most to learn about the Tudors but many to study old houses, furniture and medieval life. Selly Manor is an invaluable resource not only for the community but for educational purposes for school children across the West Midlands. A place such as Selly Manor requires significant investment in order to maintain not only its physical appearance but also investment in the types of information and activities that are available to our communities. Our priorities and some key projects for Selly Manor and our other heritage activities for 2014 to 2018 are: 

To develop better networking with peer groups and other key stakeholders.

To develop a publication that details all our key projects and successes as a way of elevating our profile within our peer groups.

Develop a new Public Relations Strategy.

Selly Manor and Minworth Greaves in the summer

Develop a Bournville children’s book through the Bournville Unwrapped Project.

Develop a corporate marketing strategy to help sell BVT services to third parties.


Bournville Village Trust Business Plan 2014 - 2018

To celebrate our heritage and use it as a platform to promote BVT.

Our Risks As with all successful housing organisations, we adapt and change what we do and how we do things in response to unforeseen events and periods of difficulty, whatever the cause. Recognising, controlling and managing risk has always been a critical consideration in our approach to good governance. It is a central feature of our day-to-day and operational management and is fundamental to Trustee and Executive Team initiatives, audit and strategic planning. The organisation has well developed internal controls and risk management processes. Our corporate and departmental risk maps are reviewed regularly by the relevant Committees who exercise robust and thorough oversight of governance and risk management systems. This is further complemented and checked by Gateway Assure, our internal auditors. Even so, to further strengthen our resilience we have worked with our Scrutiny Panel in 2012 who chose to review with a critical eye our corporate approach to financial risk management. They have looked at our processes and concluded that financial risk management at BVT is handled effectively but that the following key issues merit some further attention due to the longer term nature of their potential impact on the organisation and the environment:   

Car parking across the estates. The future viability of our shops. Making use of our open spaces.

Actions have been attached to these risks and work will begin in terms of addressing these issues during the lifecycle of this Business Plan period. With regards to our shorter term risks, Trustees regularly review our risk map to ensure we know what our major risks are and consider what we can do to minimise the probability of the risks materialising and the potential impact, should they occur. The following are some of our key risks over the next five years and should be viewed alongside the information detailed in Appendix C, Financial Forecasts:

Breach of Loan Covenants Like many housing associations, BVT has financed its development programmes over the years through taking out loan funding. We have always sought to ensure that these loans can be paid back over time from the income streams of the business and that continues to be the case today. These loans do come with certain conditions (known as loan covenants). It’s always been important to meet these loan covenants, but nowadays it is more important than ever. That’s because the loans we have with some of the major banks were all taken out before the credit crunch and are therefore on much more attractive terms than we would find today. Banks are always looking for opportunities to re-negotiate older loans and breach of loan covenants would give them the opportunity to do so. The impact of a breach of loan covenant would see a big increase in the cost of servicing our loans – perhaps increasing our interest costs by as much as 40% or around £1.9m a year. To minimise this risk, Trustees monitor covenant compliance projections for the future to identify potential issues as soon as possible and then to identify mitigation strategies should

Welfare Benefit Reforms Over the next few years, we are going to see some major changes to the Welfare Benefit System. The impact of the 'bedroom tax' in relation to under-occupation will reduce Housing Benefit in the short term. Various benefits have already been reduced and tenants’ incomes are or will be affected. Universal Credit is due to be phased in, in the near future, rolling many welfare benefits into one and apart from vulnerable tenants, benefits will be paid direct to the tenant rather than to the landlord as it is now. These changes will cause a considerable challenge to residents juggling limited finances and it is inevitable that our rent arrears will increase despite much support and advice being given to tenants. BVT has therefore developed an Anti-Poverty Strategy to address these changes. The strategy has a number of strands such as educating tenants about the changes and seeking to re-locate tenants if they are going to be unable to meet their rent because of the reduction in the benefit they receive.

Pensions As a responsible employer, BVT have for many years provided a pension facility for its staff. In the main, this has been through our membership of the Cadbury Pension Fund, although since 2010, new employees have not been eligible to join the Cadbury scheme and therefore BVT has set up its own pension scheme (BVT Pensionsaver). The Cadbury Pension Fund, like many pension schemes, is currently in deficit and the Trustees of the Pension Fund have put in place a series of measures to eliminate that deficit in the medium term. Fundamentally, these measures involve the employers contributing more towards the fund and BVT has therefore seen a significant increase in its pension contributions over the past couple of years. Those increased contributions are likely to be required throughout the business plan period and are therefore reflected in the financial projections in this Business Plan. The other key factor is the introduction of auto-enrolment. This will mean that BVT employees who are not currently in a pension scheme will be automatically enrolled into the BVT Pensionsaver scheme, unless they opt out. Currently we have 170 staff who are not in a pension scheme, so there will be another sizeable increase in our pension costs as a result. For BVT, auto enrolment comes into effect in 2014 and again, the financial impact has been reflected in the business plan projections.


Bournville Village Trust Business Plan 2014 - 2018

that be necessary. Our latest projections indicate full compliance with loan covenants. However, this is something that we are ever vigilant about and our efficiency agenda is partly intended to give us further headroom against these loan covenants in the future (as well as delivering better value for money for our customers).

Our People & Our Structures


17 Bournville Village Trust Business Plan 2014 - 2018



To deliver high quality, customer focused housing, maintenance and estate management services Estate Management Objective


Gather views from a wide cross-section of residents into the future provision and use of open spaces on the Estate. We will then make proposals for a future strategy.

The three Village Councils/Residents Associations have been asked to carry out a consultation exercise with residents in their areas to ascertain aspirations for the BVT open space on the Estate. In addition, opinion was canvassed at the 2013 Open View event. Very few comments were received but suggestions of more bins and benches were put forward, and some comments about the need for more facilities for youngsters. We are awaiting feedback from Village Councils. In addition it may be appropriate to prompt a response through the Spring edition of InView magazine.

Look to draw up a strategy to re-vitalise our shopping areas, which would examine the most effective ways of sustaining the commercial viability of local shopping facilities.

External advisors have been briefed to review the commercial property portfolio and work is currently in hand.

Improvement programme for agricultural estate cottages and houses (via BVT Asset Management Team).

Asset Management have completed and issued a comprehensive survey and planned maintenance plan for all cottages and houses not directly connected to a farmstead to provide a programme of work for forthcoming years subject to budgetary provision. Some works identified are planned for 2013.

Review proposals from recent strategic review of agricultural estate by Smiths Gore.

Smiths Gore continue to progress the review of proposals raised in their strategic review of the Estate, and are continuing to report to the Agricultural Estates Committee at each of their meetings.

Corporate Services Set up a new Customer Services Team at 350 Bournville Lane.

The new Customer Services Team was launched in May 2013 to coincide with the opening of our new office. The Team are working well together and much positive feedback has been received from residents and colleagues.

I.T Review Disaster Recovery arrangements to cater for

A fair amount has been completed on setting up a replication 19

Bournville Village Trust Business Plan 2014 - 2018

Appendix A Progress Against Previous Objectives

transfer of services from Estate Office to 350 Bournville Lane.

system to operate from Cherry Tree House. The process has been a little more problematic than first envisaged, but this should be finalised early in 2014.

Planned Maintenance Beyond Decent Homes - continue to invest and deliver our property investment and cyclical repair portfolio in compliance with our 30 year plans in Birmingham and Shropshire.

Planned and Cyclical repairs are near to completion and all contracts completed in line with our improvement programme and budgetary commitments. Customer satisfaction with work carried out is shown at an all time high 2013 will see the end of the metal window replacements in Birmingham. Empty property refurbishments (voids) continue to rise in number and expense with 2013 seeing a record year for property terminations

Bournville PropertyCare Services Continue to develop mobile working, thus enabling BPS to establish its reputation as a leading DLO and improve the customer experience.

Mobile working is 90% operational. Customers have already noticed an improvement in the service and this technology has brought BPS right into the 21st Century. Gas will be the next stage of the project and will be introduced in Spring 2014.

Stewardship and New Communities Take into management areas of public open space in Woodlands Park, Hollywell Meadow, Little Green Avenue, various smaller areas of Oakham Manor and the LEAP on phase 1b at Lawley.

Woodlands Park, Holywell Meadow and the wildflower meadow (Woodlands East Meadow, part of L2) – completed. Transferred to BVT and within management. Fields in Trust deed also completed. Various land areas at Oakham Manor (Little Green Avenue and Stocking Park Road), are not yet complete. Taylor Wimpey have yet to do works to rectify certain problems and bring the scheme to an acceptable standard before it can be recommended that BVT take the land areas into management.

Take courtyards into management at Lawley.

The works to complete the courtyards and mews links at Lightmoor have been undertaken by Crest and snagged by the Trust. The final snagging works have commenced and this will then allow the courtyards to be transferred. As referred to above, Taylor Wimpey courtyards require remedial work before they can be brought into management. The Barratt and Persimmon courtyards on Lawley phases 1A and 1B have been completed and recommended to Trustee’s to be transferred into joint ownership between the Trust and Sanctuary.

Housing Services Herefordshire Housing - monitor and review the out of hours service to embed new service provider.

Review carried out, no concerns raised. The service is working well. Next review meeting arranged for January

The Quadrangle - to replace the defective 'special' ridge tiles to all roofs.

Works completed. As the contract progressed, essential works to the chimney stacks were identified. These works have been included in the 2014 budget.

To support tenants through the Welfare Benefit Reforms to protect the Trust's income, and continue to work through the Anti-Poverty Strategy Action Plan.

Following Trustees’ support, we have taken on additional temporary staff to give Welfare Benefit Support to tenants. We have developed a more robust data base in terms of tenants experiencing difficulties and have been forming new partnerships with organisations to whom we can signpost tenants. Many positive outcomes have been achieved helping tenants apply for Discretionary Housing Payments. Support to tenants is time consuming and ongoing but very worthwhile and is essential work in protecting our rental income stream. Our income recovery team continues to take action in line with policy but courts are reluctant to grant even suspended orders if tenants are experiencing financial difficulty. A successful internal audit was undertaken in October 2013 “Rental Income – Welfare Reform”, the objective being to ensure that the Trust has taken suitable steps to minimise the impact of the Government’s changes to the welfare benefits system on the collection of its rental income. A “substantial” rating was awarded in this respect.

To work with residents and partner agencies to develop successful and sustainable communities Estate Management Assist in planning for new investment at Rowheath Park and Pavilion.

Proposals for improvements to the Pavilion and a new changing facility were approved by Estate Management and Scheme Committee, and have also received planning consent. Funding is currently being sought by Rowheath. BVT have pledged £105,000. Progress is expected in 2014.

Community Services Promote and raise the profile of the Volunteer’s Bureau in order to support the aims of our AntiPoverty Strategy.

Much work has gone into progressing the Volunteer Bureau over the past few months with updated processes and procedures. To date, over 5152 hours of voluntary work has been recorded so far this year. We recently commissioned an independent review of this service area, the report is due shortly.

Development Lightmoor - progress the next phase of new high quality homes through the Joint Venture with Homes and Communities Agency, i.e. Lightmoor Green Phases 3 and 4.

Crest are on site and making good progress.

Progress the Croppings Phase 1 Public Land Initiative

Good progress on site. Sales are progressing at a pace, with many off plan purchases. First houses handed over to 21

Bournville Village Trust Business Plan 2014 - 2018


to deliver 150 houses through Keepmoat Homes.

residents, and more in the pipeline.

Lawley - progress phases 3, 4 and 6 to provide quality homes through the Joint Venture with Sanctuary HA.

33 properties for rent and shared ownership secured at phases 3 and 4, expected to be completed 2015 and 29 properties to come over to BVT at phase 6 – completion expected summer 2016.

Possible conversion of Estate Office to flats in conjunction with the disposal programme of satellite offices.

Regular reports have been brought to Trustees and work is well in hand.

Stewardship and Communities Devise a programme of community activities and events via an Events Planning Group to encourage community cohesion and promote the work of BVT and local community groups - Lightmoor and Lawley.

The event planning group in Lightmoor Village has been formed and have planned a variety of events for the rest of the year. In Lawley, work continues with residents to foster a community spirit that will enable the formation of an events group. Events are planned in Lawley for the rest of this year to engage with residents. Joint events with Lawley and Lightmoor are also planned to bring the two communities together. BVT use the events to promote the positive work that is done in each community.

Establishment (through the Resident Involvement Strategy) of Lawley Village Management Board. Aim to increase resident satisfaction with IMS and have more say in the running and development of the services provided by IMS.

Work is progressing on a new Resident Involvement Structure.

Hold elections for resident representation to the Lightmoor Village Estate Management Committee.

Elections were held and the resident reps. selected. The residents attended the LVEMC meeting in April as visitors, and will attend as reps. in August. Already, the relationship between the reps., LVRA, and BVT has become stronger due to the insight the reps. have of the work BVT do in Lightmoor to sustain and promote the community.

Community Services Launch a recruitment campaign in order to attract more residents to our Points of View Panels and our Scrutiny Panel.

The Resident Involvement Structure is currently being revamped to ensure it meets both the Trust’s and our customers’ requirements. There will be greater emphasis on themed project groups and the use of social media in addition to the valuable contribution of our three Resident Associations. OpenView 2013 attracted some 500 residents and we collected 54 expressions of interest in getting involved, which we have followed up. We have also developed much closer links with our Volunteer Bureau and directed people onto activities from this link. This is work in progress and will be further developed in 2014.

To communicate effectively with all our customers

Embed the new OpenView customer forums and to continue to utilise the website as a way to gather views and provide insight into the priorities of our wider community.

The Forums have been developed to make them easier to use and they can now be accessed via social media. Vision 13 voting saw almost 2000 people visit our website to cast their votes, the highest number ever. A wide variety of website articles have been produced by the Community Team over the past few months publicising activities and ways to get involved with BVT. The Team are also working with our Residents Associations to help them develop their own websites and train members in their upkeep.

Expand and develop the annual OpenView event as a way to capture feedback and raise the profile of BVT within the wider community.

This year’s OpenView event at Rowheath took place on 21 st September. Some 500 residents attended and gave us their views on a wide range of topics. OpenView is our biggest corporate event aimed at raising our profile within the locality and we are currently exploring what OpenView 2014 will look like. However, there are numerous other initiatives in place (and being developed), to raise our profile including our significant partnership work and regular presence at Bournville Festival. This year we were joined by the Busy Parents Network, Selly Oak Live at Home Scheme and Street Associations.

Business Improvement Unit Use the feedback and outcomes from the Annual Satisfaction Survey to identify areas for improvement and respond to them through the work of various teams across the organisation.

This work is ongoing and the Satisfaction Surveys provide us with valuable data, enabling us to focus on areas for improvement.

I.T. Explore the possibility of implementing a new GIS Mapping System for use across the organisation once we have moved to 350 Bournville Lane.

New system (GeoSamba) has been implemented prior to office move.

To develop and promote new business initiatives to enable future growth Bournville Architects To outperform the 3 year support package agreed with Trustees in 2010.

Bournville Architects returned to surplus 12 months earlier than originally anticipated. Profit/ (loss) before Capital As approved by Trustees Profit/ (loss) before Capital Actual 23

2011 (65,000)

2012 (15,000)

2013 15,000



16,000 (outturn forecast)

Bournville Village Trust Business Plan 2014 - 2018

Community Services

Heritage To increase visitor figures to Selly Manor by 5%.

Still expecting to achieve this target for 2013.

Community Services Increase usage and sustainability of both Shenley Court Hall and Phoenix Hall to ensure that they continue to meet the needs of their local communities.

Both halls continue to meet local needs and diversify their activities. Footfall has increased and Shenley succeeded in exceeding the income target for 2012/13. Phoenix Hall is situated in one of the most deprived areas in the country and has different challenges. The Annual Phoenix Fun Day on 8 June was attended by over 100 people and feedback was extremely positive. Bournville Architects have undertaken a property condition survey for each of our halls and developed an Asset Management Plan for us. We are currently awaiting an independent report to consider activities at each hall. The feedback will be incorporated into our new Community Development and Resident Involvement Strategy.

To invest in our people Corporate Services Develop a new Corporate Health and Safety Policy.


Human Resources Develop a series of action points that arise from our first ever staff survey.

Action plan has been prepared and a lot of work has been completed in accordance with the plan. There are some issues to be resolved and these will be completed in due course. We also plan to undertake another staff survey in 2015.

Auto-enrolment to pension scheme (from April 2013).

Preparations are underway with progress reports presented through FAGP committee. Confirmation now received that auto-enrolment will begin for BVT in January 2014.

Reduce sickness absence - through individual case management assessments from 2012.

Individual cases have been managed through medical reports and specialists. Where possible long term sickness absence has not been prolonged and decisions on employment have been made quickly on medical evidence and consultation with the staff member concerned. There have also been a number of changes made to the sickness absence policy now called the Well-being and Absence policy. The aim of the changes is to encourage staff to take responsibility for their own health and well-being. The policy focuses more on the Simply Health Scheme to encourage staff to utilise the facilities so that they can make a speedy recovery and reducing the length of time that they are off work e.g. counselling service, employee help line, other treatments such as physiotherapy etc. The policy also now allows the Trust to review a case and dismiss during a period

The impact of these changes will be monitored periodically. Implement the Leadership and Management Training programme for the next tier of Managers and Supervisors.

Training programme is well underway.

Bournville PropertyCare Services Continue to develop and invest in our apprentice scheme in partnership with the CITB and South Birmingham College.

In 2013 BPS have again grown the apprentice scheme. We have also developed a new brochure, entitled ‘Building a Future’. BPS has also won the regional and national ‘Apprentice Employer of the Year’ Awards from CITB. One of our second year apprentices has also won ‘Apprentice of the Year 2013’.

To deliver value for money and efficiency in all of our services Business Improvement Team Review the Performance Management Strategy in order to ensure it’s relevant and in line with the expectations of the organisation.

Work is ongoing with new KPIs in the process of being developed alongside the Scrutiny Panel and Senior Managers.

To develop a stringent approach to the organisation's development, monitoring and reviewing of efficiency plans on behalf of FAGP.

Ongoing. A new self assessment approach has been agreed at FAGP in July and we are currently piloting that before rolling it out across BVT.

Internal auditors looked at Performance Management in September 2013 and there are a number of recommendations for change that need to be implemented.

Bournville PropertyCare Services Develop an electronic integrated store system that enables the operative to carry extra stock. This will improve the customer experience and allow us to enhance our 'right first time' strategy.

This is now fully operational, as of October 2012. We are just starting to see the benefits and customers will start to see less down time on jobs, whilst operatives previously had to collect materials from the Depot or our building supplier.

Finance To consider the implications of International Financial Reporting Standards (IFRS) and discuss the implications with our funders at an early stage.

A report was presented to the November FAGP committee meeting on the likely implications, both for our accounts and for our funding covenants.

To celebrate our heritage and use it as a platform to promote BVT Corporate Services Create a heritage display at our new Offices at 350 Bournville Lane.

“Timeline” has been included in Reception Area as a piece of artwork and the Library Facility will be used to help promote BVT’s work and as an archive facility.


Bournville Village Trust Business Plan 2014 - 2018

of absence before the employee’s sick pay comes to end.

Appendix B How It All Fits Together


Introduction This appendix to the Business Plan shows the latest financial forecasts based upon the 2014 budget, the current development programme and the assumptions set out on page 5 of this appendix.

Summary The forecasts on pages 6-8 of this appendix show a reasonable surplus is projected for each year of the plan. The highest surplus is projected for 2014, when we are planning to sell off our former head office, as well as a couple of properties on our agricultural estates which Trustees no longer require. The surplus on these sales helps to boost the anticipated surplus in 2014 by around £300,000. From 2015 onwards, surpluses are projected to grow, despite interest rates increasing and despite allowances made for the impact of welfare benefit reform. At this stage, it’s difficult to know what impact the various changes to welfare benefits will have on our business, but I have factored in a 10% year on year increase in arrears within these forecasts, in addition to a 50% increase in allowance for bad debts as well as additional staffing costs. BVT has a number of development aspirations during this business plan period. By 2015, we hope to complete the development of our College Green Care Village, albeit some elements of this will be delivered by other organisations. We shall also be pressing ahead with our Lightmoor and Lawley development projects in Telford. In fact, over the 5 years of the business plan period, we aim to acquire 270 new units of accommodation. We also ensure that we continue to look after our current property portfolio. Indeed, we shall be spending over £3m each year to ensure our properties continue to meet the Decent Homes Standard as well as investing in our non-housing portfolio. To help fund this development and investment programme, we aim to utilise the most cost effective finance that we can. We have already registered our interest in taking funding from Affordable Housing Finance, the company set up to administer the government’s loan guarantee scheme. We shall always ensure that, as far as reasonably possible, we will work within the funding covenants agreed with each of our funders. These forecasts indicate a fairly healthy level of headroom on our covenants and Trustees will seek to ensure that this level of headroom is maintained in the longer-term.

Sensitivity Analysis Let’s have a look at the key risks BVT faces over the business plan period and what impact these could have on these financial forecasts. 1

Bournville Village Trust Business Plan 2014 - 2018

Appendix C Financial Forecasts


Breach of Loan Covenants Whilst the latest projections indicate a reasonable amount of headroom over all of our funding covenants, the prospect of a “technical” breach can never be truly discounted. The real concern is that a breach of any loan covenant would result in all our principal funders (except THFC) being able to re-price their loans. This would be a matter for negotiation with each funder, but it could result in a significant increase in our interest costs of around £1.9m a year. Clearly, that is not something we can allow to happen, which is why Trustees pay very close attention to our covenant compliance projections and would take remedial action before the level of headroom became too small. This is also why we are closely monitoring the introduction of International Financial Reporting Standards in 2015. Some of the accounting changes currently being proposed could have a real impact on our ability to meet our loan covenants. Our funders really should allow us to eliminate the impact of any accounting changes when calculating compliance with funding covenants. We will therefore be discussing this with our funders over the coming weeks and months to ensure that these accounting changes do not adversely impact on our ability to meet our covenants.


Welfare Benefit Reforms and Government Spending We all know that the government has got to reduce the level of public expenditure to bring our nation’s finances into better order. We know about some changes to welfare benefits over the next few years, which will ultimately lead to Universal Credit replacing a number of current benefits. The process is expected to lead to a reduction in benefits and we have begun to implement our Anti-Poverty Strategy to educate and assist our customers as much as we can. The issue is compounded by the fact that, apart from vulnerable customers, benefits are going to be paid to the customers, rather than to the landlord as is generally the case at present (at least as far as housing benefit is concerned). At this stage, no-one can be certain of the impact of these changes on housing association finances. These financial projections allow for an annual increase in rent arrears of around 10% year on year. It would require an annual increase in arrears in excess of 80% to give us real cause for concern in terms of our finances. At this stage, this seems to be extremely unlikely, but this is again something that Trustees will be monitoring closely in the years ahead.


Pensions The financial forecasts currently allow for the potential impact of auto-enrolment in 2014. Auto-enrolment will require BVT to put all 170 staff not currently in a pension scheme, into such a scheme. If these 170 staff are put into our BVT Pensionsaver scheme, with BVT contributing 1% for each member of staff, this adds around £36,000 to our annual pension costs. Staff may choose to increase their contributions which would result in a further increase in employer contributions. Whilst this has a detrimental impact on our future finances, as a responsible employer, we welcome auto-enrolment as a means of encouraging people to think about their pension needs.


Increase in Future Funding Borrowing from banks has not only become more expensive in recent times, but no bank these days is prepared to lend for longer than 10 years. BVT Trustees have always preferred long-term funding, which is why we have recently drawn £20m from bonds issued by THFC. Indeed more and more housing associations are looking for funding from the bond markets. I don’t see this trend changing in the near future. In recent months, a number of housing associations have launched bonds and have been able to secure funds usually at a rate of between 4.5% and 5%. The current business plan assumes all future funding will be secured at 5%. It could be argued that this is pessimistic on the basis that as more housing associations come to the bond market for funding, investors become more familiar with the sector and begin to reduce their expectations, thus reducing funding rates. Equally, it could be argued that as the Bank of England’s programme of quantitative easing (QE) is gradually unwound, then bond pricing will start to increase – the argument being that QE has had an artificial impact on keeping down the price of bond funding in recent years. Time will tell which of these arguments will prevail, but at what level does future funding become unviable for BVT? If funding rates increase beyond 8.5% in the longer-term, then, without some other beneficial change, BVT would struggle to meet its loan covenants towards the very end of the business plan period. In reality, I think it’s most unlikely that rates would increase beyond 8.5% unless there was a marked increase in inflation. If that were the case, then the rent formula (which is linked to inflation), would offset at least some of the impact of the increase in funding costs.

Mitigation Strategies Whilst the sensitivity analysis above would appear to give a fair degree of reassurance about BVT’s financial position, the real concern could be that two or more of these scenarios come together to knock us off-course. So, what can be done if such an eventuality materialises? 3

Bournville Village Trust Business Plan 2014 - 2018

More of an issue for us is meeting our share of the liabilities to the Cadbury Pension Fund (CPF). BVT has just over 140 staff within the CPF. The financial forecasts currently allow for a capital injection of £300,000 per year into the fund as well as the ongoing employer contributions which range from 13.2% to 28.1% depending upon which section of the CPF each employee is in. All of this has been in place since the 2010 actuarial valuation of the CPF was undertaken and which calculated a deficit of £326m. Hopefully, at these contribution levels, the deficit will reduce, but with people living longer and uncertainty about future investment returns, this is not guaranteed. So, the 2013 actuarial valuation will be crucial in identifying whether we are on the right track to eliminate the deficit in the medium term or whether contributions have to be increased still further. We will know the outcome of the 2013 valuation early in 2014. If we assume no change in the rate of ongoing employer contributions, but that our annual capital injections have to increase, when does this become a real concern for us? The answer is that even if the level of capital injection trebled to £900,000, we would still be able to meet all of our loan covenants.


Reduce Expenditure Trustees would no doubt look at what options they have for reducing expenditure. There is already a requirement on officers to deliver greater value for money, but if further measures were necessary then Trustees would have to consider contracting out services if they could be done more cost effectively by a third party. They could also look to reduce pay increases for staff. They may even have to consider closing down some functions / facilities that cost money to run, even though these may be an important part of BVT’s commitment to the success of the communities we serve, things that distinguish BVT from most other housing associations.


Asset Management Trustees may well look again at the Asset Management Strategy as a way of selling off some assets, in order to generate additional financial capacity. This could be just the selective sale of void properties or could mean that a block of assets are identified for sale to another suitable organisation.


Income Generation To some degree, BVT already sells its services to third parties. This could be done on a larger scale to generate additional income, although inevitably it would mean an increase in expenditure too. The best example of this would be selling our stewardship service to other organisations who are developing new communities elsewhere or possibly selling our repairs service to customers who own their own homes but are looking for a trustworthy, reliable contractor to undertake maintenance on those homes. We may even be able to make more of our charitable status to seek donations / grants from third parties to help us through more difficult times.

Indeed a combination of all three may be required if the going gets really tough.

Conclusion These financial forecasts indicate that BVT is in good financial health and is likely to be able to cope even if some key risks materialise over the business plan period.

Paul Haywood Director of Financial Services







General Inflation (RPI but CPI from 2015 onwards)






Payroll increase for salaried staff (inc any NI or pension changes)






Payroll increase for trade / care staff (inc any NI or pension changes)






Fair Rents






Assured Rents






Garage Rents






Service Charges






Supported Housing






Commercial Rents






Agricultural Rents






Maintenance Costs






Base Interest Rates (LIBOR)






House Price Inflation






Average Funding Interest Cost






5 Bournville Village Trust Business Plan 2014 - 2018

Business Plan 2014-2018

PROJECTED INCOME & EXPENDITURE ACCOUNT ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

YEAR YEAR YEAR YEAR YEAR 2014 2015 2016 2017 2018 ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------








19,639,801 0







------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------4,490,169 5,043,802 5,760,192 6,159,118 6,568,558 ===================== ===================== ===================== ===================== ===================== 912,918












178,780 4,669,370

94,313 5,202,577

17,669 5,612,091

25,094 5,974,703

40,087 6,188,372

------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------













------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------812,497 468,139 699,460 767,758 935,287 ===================== ===================== ===================== ===================== =====================

Business Plan 2014-2018

PROJECTED BALANCE SHEETS ~~~~~~~~~~~~~~~~~~~~~~~~ FIXED ASSETS Housing Land & Buildings Less Capital Grants Received Less Depreciation

Other Land & Buildings Plant & Equipment Fixed Asset Investments

CURRENT ASSETS Stock & work in progress Land & Property Earmarked For Sale Rent arrears (net of provision) Other debtors Cash at bank and in hand


YEAR YEAR YEAR YEAR YEAR 2014 2015 2016 2017 2018 ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------

174,280,300 189,432,201 197,628,957 205,701,898 213,179,900 (35,636,360) (35,636,360) (35,636,360) (35,636,360) (35,636,360) (18,143,221) (20,434,830) (22,873,538) (25,414,749) (28,053,936) ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------120,500,719 133,361,011 139,119,059 144,650,788 149,489,603 18,049,740 17,792,839 17,491,708 17,167,036 16,848,991 712,060 803,579 858,738 895,913 923,831 9,440,000 9,440,000 9,440,000 9,440,000 9,440,000 ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------148,702,519 161,397,429 166,909,505 172,153,737 176,702,425

400,000 400,000 400,000 400,000 400,000 609,676 467,624 734,346 513,360 500,411 991,995 987,513 985,503 983,681 982,180 2,615,913 2,383,541 1,981,958 1,404,637 1,093,417 17,147,899 2,355,854 1,433,956 1,457,723 1,512,685 ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------21,765,483 6,594,532 5,535,763 4,759,401 4,488,693

0 0 0 0 0 3,122,122 3,483,427 3,486,392 3,489,237 3,492,456 3,033,655 3,068,797 3,104,967 3,142,268 3,180,779 ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------6,155,777 6,552,225 6,591,358 6,631,504 6,673,235 ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------15,609,706 42,308 (1,055,596) (1,872,103) (2,184,541) ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------


164,312,226 161,439,737 165,853,909 170,281,634 174,517,884 ===================== ===================== ===================== ===================== =====================

Mortgages & loans Endowments Other LT creditors

115,398,540 111,955,513 115,565,675 119,138,896 122,352,980 696,000 696,000 696,000 696,000 696,000 0 0 0 0 0 ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------116,094,540 112,651,513 116,261,675 119,834,896 123,048,980

CAPITAL AND RESERVES Accumulated surplus Reserves

46,317,685 46,785,824 47,485,284 48,253,041 49,188,328 1,900,000 2,002,400 2,106,950 2,193,696 2,280,577 ------------------------------------ ------------------------------------ ------------------------------------ ------------------------------------ -----------------------------------164,312,225 161,439,737 165,853,909 170,281,634 174,517,885 ===================== ===================== ===================== ===================== =====================

7 Bournville Village Trust Business Plan 2014 - 2018

Business Plan 2014-2018 Base Model Year












Average Interest Rate






Net Development Costs (£'000s)






Total Income (£'000s)






Interest Cost (£'000s)






Global Assumptions

Key Financial Data

Cash in hand (£'000s)






Total Debt (£'000s)






Total Net Worth At Historic Cost(£'000s)






Total Net Worth At Existing Use Value (£'000s)






Total Net Worth At Open Makret Value (£'000s)











Total Number of Rented Homes at Year End Key Performance Indicators Interest Cover






Gearing ratio based on historic cost












Interest Cover

Gearing Based on Historic Cost

1.70 1.60 1.50

Cash Balance












1.30 2014

55% 2014









0 2014







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