The leader of Nottingham City Council is set to resign as a board member of a housing company after claims that his role represented a conflict of interest. Blueprint (General Partner) Limited was formed in 2005 and since then has worked on projects across the East Midlands, including the redevelopment of The Meadows.
The company is partly owned by Nottingham City Council and the current leader of the Labour authority, Councillor David Mellen, has been on its board since September 2019. Previous members of the company's board include ex-city council leader Jon Collins and senior councillors including Graham Chapman and Adele Williams.
But Cllr Mellen said the council has received advice from officers at the authority "in the last few months" about the position held by elected members on company boards. The issue was discussed at a full council meeting on Monday (March 6), following a question from Conservative Group leader Andrew Rule.
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Cllr Rule said: "Given Blueprint's stated purpose is 'the encouragement of regeneration and economic resurgence', can the leader of the council confirm why being a director of that company whilst simultaneously acting as the portfolio holder for strategic regeneration and communications doesn't present a situational conflict of interest?"
Cllr Mellen said: "I've been a Blueprint board member for three years, I've declared an interest or not taken part in a discussion at companies executive sub-committee each time the progress of the company has been discussed. Following the recent completion and approval of the companies governance handbook, executive members with perceived conflicts have agreed to step down from boards where there is an actual or perceived conflict."
"This will happen in May, rather than in a rush, giving time for planning for the company so they can welcome and induct new board members." Cllr Rule said it was a "welcome move to resolve the conflict of interest" but questioned why it had "taken so long".
Cllr Mellen said advice on the matter had only been received from officers in the last few months. The leader also said the council had recently received instructions to align its policy with the lawyers in local government code of practice.
This means that council officers rather than elected members will be the "default appointees" to company boards, though members will still be appointed "by exception". The only other serving councillor on the Blueprint board is Cllr Leslie Ayoola, who serves as the executive assistant for property and community safety at Nottingham City Council.
Cllr Rule also asked during Monday's meeting whether Cllr Mellen could reassure him that no council property had been sold under value to Blueprint during his tenure. Cllr Mellen said: "Yes, I can assure you."
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