Issue - meetings

1.     That the HRA Outturn figures for 2022/23 be noted as detailed in Appendices 1 and 2 of the report.

2.     That the carry forward of £0.018m of HRA revenue funding from 2022-23 be approved as detailed in paragraph 11.4 of the report.

3.    That the Housing capital programme outturn for Major Works and New Build be noted as detailed in paragraphs 11.5 to 11.8 and Appendices 3 & 4 of the report.

4.     That the funding of the 2022/23 HRA capital programme be noted as detailed in paragraphs 11.10 & 11.11 and Appendix 5 of the report.

5.     That the revised capital programme budget of £35.653m for 2023/24 be approved as detailed in paragraphs 11.12 & 11.13 and Appendices 6 & 7 of the report that takes account of potential programme slippage and the re-profiling of expected spend.

Councillor Cutler introduced the report on behalf of Councillor Westwood and stated that the report had been considered at Scrutiny Committee on 6 September 2023 where a number of questions from members had been responded to.  Cabinet Members had all received a draft of the Scrutiny Committee minutes prior to the Cabinet meeting.  There were two outstanding queries relating to the funding allocated for overheating mitigation measures and the expected number of new homes to be delivered in 2023/24. 

The Strategic Director provided answers to both of the outstanding queries outlined above.

David Chafe (TACT) spoke during public participation as summarised briefly below.

He stated that the proposals had been considered at the TACT support group and he had attended the Scrutiny Committee to listen to discussions. In general, TACT found the contents of the report very technical and difficult to understand and he therefore welcomed the opportunity for the full TACT meeting to be briefed at their meeting in November.  He supported the recommendations as set out.

The Corporate Head of Housing confirmed that a summary paper would be provided for the TACT meeting and officers would be in attendance to respond to questions.

At the invitation of the Leader, Councillors Wallace and Horrill addressed Cabinet as summarised briefly below.

Councillor Wallace

He expressed concern about the lack of actual expenditure on the retrofit programme, despite the significant amount of budget provision.  He requested confirmation that the 23/24 programme was on track.

Councillor Horrill

She raised a number of specific questions regarding any provision for disrepair compensation, staff recruitment in key posts, commitment to the new homes programme and the refund to the HRA for the Tower Street new build project which was not being progressed.

The Strategic Director responded to comments raised, including confirming that, as had been reported to Business and Housing Committee on 12 July 2023 the retrofit programme for 2023/24 was on track.  The Leader and other cabinet members confirmed that they remained committed to the new homes programme.

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RESOLVED:

1.           That the HRA Outturn figures for 2022/23 be noted as detailed in Appendices 1 and 2 of the report.

2.           That the carry forward of £0.018m of HRA revenue funding from 2022-23 be approved as detailed in paragraph 11.4 of the report.

3.           That the Housing capital programme outturn for Major Works and New Build be noted as detailed in paragraphs 11.5 to 11.8 and Appendices 3 & 4 of the report.

4.      That the funding of the 2022/23 HRA capital programme be noted as detailed in paragraphs 11.10 & 11.11 and Appendix 5 of the report.

5.      That the revised capital programme budget of £35.653m for 2023/24 be approved as detailed in paragraphs 11.12 & 11.13 and Appendices 6 & 7 of the report that takes account of potential programme slippage and the re-profiling of expected spend.

RECOMMENDATION:

It is recommended that the committee scrutinise and comment on the proposals within the attached cabinet report, ref CAB3417 which is to be considered by cabinet at its meeting on the 13 September 2023.

Councillor Westwood introduced the report, ref CAB3417 which set out the Housing Revenue Account (HRA) Outturn 2022/23, (available here). The introduction included the following points.

1. In 2022/2023, the HRA Outturn indicated an overspend of £1.304 million and an adverse variance of £0.698 million, including a one-off accrual to be reversed in 2023/24.

2. There was a request to carry forward £18,000 of unspent set-up funding for the Housing Company into 2023/2024.

3. The 2022/2023 Capital program saw a carry forward of £14.44 million, with reprofiling for the capital program in 2023/2024 onwards.

4. Notable variances included:

a)    An employee underspend of £108,000.

b)    Premises overspend of £2 million, encompassing the mentioned accrual and a repair and maintenance overspend of £0.486 million.

c)    An overspend of £0.109 million on electricity costs.

d)    A net favourable variance of £0.622 million in net interest and depreciation due to lower interest payments, reduced capital spend, and a higher depreciation charge.

e)    Strong performance in void management and arrears, generating additional income of £0.2 million.

5. Capital program overspends, and underspends consisted of:

a)    An overspend of 2% on the Major Works budget, driven by fire prevention and roofing works.

b)    Underspend in estate improvement works amounting to £0.187 million.

c)    Sheltered schemes, including power door installation and fire safety work, resulting in a £0.24 million underspend.

d)    An underspend of £0.328 million on climate emergency works due to contractor difficulties.

e)    An underspend of £0.207 million on procuring a sewage treatment vehicle.

f)      An underspend of £13.03 million in the new homes program, detailed in section 11 of the report.

The committee was recommended to comment on the proposals within the attached report, ref CAB3417 which was to be considered by the cabinet at its meeting on 13 September 2023.

Councillor Lee addressed the committee and raised the following points:

1. In reference to section 1.2 and the capital program for retrofit works, he asked:

a)    When was the £15.7 million budget allocated?

b)    How much of this budget had been expended by the end of 2022/2023?

c)    How many homes had undergone upgrades by the end of 2022/2023?

d)    Had a new energy staff role been established, and if so, was it funded from the £15.7 million budget?

2. Regarding the revised Capital program budget for 2023/2024, he asked:

a)    Whether funding had been earmarked to address overheating, considering the vulnerability of over one-third of homes to overheating due to climate change.

b)    What measures were in place for existing homes considering recent building regulations that tackle overheating in new homes?

c)    He drew attention to recent reports titled "It's Getting Hot in Here" and the UK Green Building Council's statement, "The UK isn't built for this heat."

3. Regarding the challenges in recruiting and retaining housing staff, he requested information on the steps taken to mitigate this issue.

4. Regarding section 11.3 B, he sought more detailed information about the costs associated with the property at Tower Street.

David  ...  view the full minutes text for item 6