Issue - meetings

Report H&N06/14 from the Head of Housing & Neighbourhoods

(Enclosure)

Decision:

Cabinet approves the Housing Revenue Account Business Plan for 2014-2019 subject to minor amendments being agreed with the Portfolio Holder Good Housing and the Strategic Director for Community & Environment.

Considerations/reasons for decision:

1)              Report H&N06/14 from the Head of Housing & Neighbourhoods.

2)              The Housing Revenue Account (HRA) Business Plan (BP) sets out the Council’s priorities for social housing and how these would be delivered and financed over a thirty year period.

3)              The Plan sets out the key areas of focus for housing services and investment for the medium term whilst ensuring that sufficient revenue and capital resources were available to support long term investment in existing social housing stock and associated services.

4)              This was the first HRA BP to be prepared since the HRA became ‘self-financing’ in April 2012; the net effect of the self-financing arrangement was beneficial to the Council with £8 million being available to spend during the 2018/19 period without recourse to re-financing of existing borrowing or utilization of further borrowing headroom.

5)              The HRA Business Plan made a commitment to maximise investment in new housing; using reserves, capital receipts and borrowing capacity whilst maintaining a financially robust long term financial plan.

6)              Consultation on the HRA BP had been carried out with the Resources PDG and also the Tenants’ Service Review Groups.

7)              The Business Plan was fully funded and predicated on a range of financial assumptions which would be kept under review.

8)              The provision of a HRA BP was a requirement of s.88 of the Local Government Act 2003.

9)              Comments made by the Head of Housing & Neighbourhoods on commending the HRA BP for approval.

10)           Comments made by the Portfolio Holder for Good Housing also commending the HRA BP and the work undertaken by the Head of Housing & Neighbourhoods and his team in putting the plan together.

11)           Comments made by the Strategic Director Community & Environment on the final format of the Business Plan.

Other Options Considered:

No other options were considered as the HRA Business Plan was central to the delivery of the Council’s housing services.

Report by the Head of Housing and Neighbourhoods.                 (Enclosure)

The Strategic Director – Community and Environment Focus presented the draft Housing Revenue Account Business Plan which set out the Council’s priorities for the management, maintenance and development of its housing stock, how it helps delivery of the council’s wider strategic priorities and how it would be financed. Members were reminded that the document, appended to report number H&N05/14 was a working draft and would be subject to further change before final consideration by Cabinet.

The PDG had fed into the development of the draft Plan during a series of workshops, considering areas including:

·         Overall approach to rent policy

·         Agreeing the 30-year income and expenditure assumptions were sound

·         Agreeing to a pilot fencing scheme and evaluation of outcomes

·         Use of alternative construction approaches and new technology

·         Agreeing to bring housing balances down releasing a further £8m for investment in new housing

·         Keeping the impact of right to by sales under review

·         Targeting house building to meet varying needs with a particular focus on older people, subject to further evaluation of the age profile of existing tenants

·         Repayment of Housing Revenue Account loans to facilitate more significant levels of investment

The Strategic Director summarised the structure of the draft document, specifically drawing members’ attention to plans for improved services and asset management and investment in new housing.

Some concern was expressed about why the use of Procurement Lincolnshire to assist with the letting of major contracts was specified in the plan. Members were advised that the Council contributed to the service and had experienced some significant savings with its support. They were also reminded that the text within the draft said that the service would be used “where appropriate”.

Members noted that right to buy sales exceeded budgeted levels in 2013/14 with 20 enquiries to date in 2014/15 (against a budgeted figure of 17). They were also informed that since 2006 approximately 120 homes had been sold through this route.

Discussion ensued on financing options and the potential for investment in new housing. Members of the PDG recommended as a minimum the utilisation of existing balances to release £8m for investment in new houses immediately. They recommended that this should be reviewed following the 2015 elections taking account of the financial landscape at the time and the continuing need for affordable housing to be provided. In view of the overwhelming and growing demand for affordable housing the Portfolio Holder and officers suggested flexibility with regard to financing to improve the pace of delivery for new homes. It was suggested that the period until May 2015 should be used to evaluate opportunities to use alternative solutions for delivery of housing and investigate alternative construction technology.

The suggestion that the Council could look at providing funding for affordable housing was supported. This could provide a cheaper way to finance new build housing and provide an income stream for the HRA.

Section 7 of the draft document covered financial strategy and planning; additional actions related to this would consider value for money. The  ...  view the full minutes text for item 18