Issue - meetings

RECOMMENDED (TO COUNCIL):

1.                  Note the HRA Financial Plan operating account, including annual working balances, as detailed in Appendix 6 of report CAB3490.

2.                  Approve the 2025/26 Housing Revenue Account budget as detailed in Appendices 1 and 2 to the report. 

3.                  Approve the proposed capital programme for maintenance, improvements and renewals totalling £167.868m.

4.                  Approve capital expenditure and delegate to the Strategic Director with responsibility for housing authority to enter into necessary contracts for the 2025/26 capital programme of £21.134m, as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4.

5.                  To approve the award of a contract, by direct award, for technology-based retrofit works of £4.3m per year in 2025/26, 2026/27 and 2027/28 (totalling £12.8m), contingent on funding secured from the Department of Energy Security and NetZero Social Housing Fund Wave 3 Grant, equivalent to 190 properties over 3 years. (See Para 11.62 to 11.65 of the report).

6.                  Approve the proposed 10 year capital programme for new homes totalling £237.7m, and expenditure of £5.255m in 2025/26, as detailed in appendix 4 of the report in accordance with Financial Procedure Rule 7.4, 

7.                  Approve the financing of the HRA Capital Programme as detailed in Appendix 5 of the report, (noting the planned repayment of borrowing following the 1000 homes programme).

8.                  Approve the revenue savings target of £2m outlined to Cabinet in the November options paper and subsequently consulted upon and summarised at appendix 7 of the report.

9.                  Authorise the Section 151 Officer, in consultation with the Strategic Director with responsibility for Housing to approve the buy-back, during 2025/26, of individual former HRA properties sold under the Right to Buy, following positive financial appraisal, utilising the unallocated New Homes budget (see para 11.26 of the report).

10.              Subject to the acceptance of the expression of interest to the Local Authority Housing Fund (LAHF) round 3:

a.                  Authorise the Strategic Director with responsibility for Housing to enter into a revised Memorandum of Understanding with Ministry of Housing, Communities & Local Government to secure additional LAHF funding estimated at £2.841m

b.                  Delegate authority to the Section 151 Officer to approve capital expenditure (subject to financial appraisal, in accordance with Financial Procedure Rule 7.4) of up to £6.0m to purchase up to 12 properties using the approved HRA unallocated new build budget, to be part-financed by LAHF grant with any balance via prudential borrowing.

c.                  Authorise the Corporate Head – Asset Management and the Strategic Director with responsibility for Housing to purchase up to 12 properties. (Para 11.70-11.72 of the report) 

11.              Approve the average rent increase for 2025/26 for all affordable, Shared Ownership and social housing of 2.7% based on the September 2024 CPI figure of 1.7% +1% (see para 11.6-11.7 of the report).

12.              Approve amendments to HRA tenant service charges in 2025/26 to reflect cost recovery based on 2023/24 actual costs, subject to capping at 5% or £5, whichever is greater, and noting that capped charges will be subject to gradual increases in  ...  view the full agenda text for item 5

Councillor Becker left the meeting before consideration of this item and took no part in the discussion or decision.

Councillor Westwood (Cabinet Member for Housing) moved that the recommended minute of Cabinet be approved and adopted (seconded by Councillor Learney, Cabinet Member for Climate Emergency).

Council proceeded to ask questions and then debate the matters in the recommended minute and report.

RESOLVED:

That the recommended minute of Cabinet held 12 February 2025 (as follows) be approved and adopted:

That Council:

1.                  Note the HRA Financial Plan operating account, including annual working balances, as detailed in Appendix 6 of report CAB3490.

2.                  Approve the 2025/26 Housing Revenue Account budget as detailed in Appendices 1 and 2 to the report. 

3.                  Approve the proposed capital programme for maintenance, improvements and renewals totalling £167.868m.

4.                  Approve capital expenditure and delegate to the Strategic Director with responsibility for housing authority to enter into necessary contracts for the 2025/26 capital programme of £21.134m, as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4.

5.                  To approve the award of a contract, by direct award, for technology-based retrofit works of £4.3m per year in 2025/26, 2026/27 and 2027/28 (totalling £12.8m), contingent on funding secured from the Department of Energy Security and NetZero Social Housing Fund Wave 3 Grant, equivalent to 190 properties over 3 years. (See Para 11.62 to 11.65 of the report).

6.                  Approve the proposed 10 year capital programme for new homes totalling £237.7m, and expenditure of £5.255m in 2025/26, as detailed in appendix 4 of the report in accordance with Financial Procedure Rule 7.4, 

7.                  Approve the financing of the HRA Capital Programme as detailed in Appendix 5 of the report, (noting the planned repayment of borrowing following the 1000 homes programme).

8.                  Approve the revenue savings target of £2m outlined to Cabinet in the November options paper and subsequently consulted upon and summarised at appendix 7 of the report.

9.                  Authorise the Section 151 Officer, in consultation with the Strategic Director with responsibility for Housing to approve the buy-back, during 2025/26, of individual former HRA properties sold under the Right to Buy, following positive financial appraisal, utilising the unallocated New Homes budget (see para 11.26 of the report).

10.              Subject to the acceptance of the expression of interest to the Local Authority Housing Fund (LAHF) round 3:

a.                  Authorise the Strategic Director with responsibility for Housing to enter into a revised Memorandum of Understanding with Ministry of Housing, Communities & Local Government to secure additional LAHF funding estimated at £2.841m

b.                  Delegate authority to the Section 151 Officer to approve capital expenditure (subject to financial appraisal, in accordance with Financial Procedure Rule 7.4) of up to £6.0m to purchase up to 12 properties using the approved HRA unallocated new build budget, to be part-financed by LAHF grant with any balance via prudential borrowing.

c.                  Authorise the Corporate Head – Asset Management and the Strategic Director with responsibility for Housing to purchase up to 12 properties. (Para 11.70-11.72 of  ...  view the full minutes text for item 5

That Cabinet recommend that Council*

1.    Note the HRA Financial Plan operating account, including annual working balances, as detailed in Appendix 6 of report CAB3490.

2.    Approve the 2025/26 Housing Revenue Account budget as detailed in Appendices 1 and 2 to the report. 

3.    Approve the proposed capital programme for maintenance, improvements and renewals totalling £167.868m.

4.    Approve capital expenditure and delegate to the Strategic Director with responsibility for housing authority to enter into necessary contracts for the 2025/26 capital programme of £21.134m, as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4.

5.    To approve the award of a contract, by direct award, for technology-based retrofit works of £4.3m per year in 2025/26, 2026/27 and 2027/28 (totalling £12.8m), contingent on funding secured from the Department of Energy Security and NetZero Social Housing Fund Wave 3 Grant, equivalent to 190 properties over 3 years. (See Para 11.62 to 11.65 of the report).

6.    Approve the proposed 10 year capital programme for new homes totalling £237.7m, and expenditure of £5.255m in 2025/26, as detailed in appendix 4 of the report in accordance with Financial Procedure Rule 7.4, 

7.    Approve the financing of the HRA Capital Programme as detailed in Appendix 5 of the report, (noting the planned repayment of borrowing following the 1000 homes programme).

8.    Approve the revenue savings target of £2m outlined to Cabinet in the November options paper and subsequently consulted upon and summarised at appendix 7 of the report.

9.    Authorise the Section 151 Officer, in consultation with the Strategic Director with responsibility for Housing to approve the buy-back, during 2025/26, of individual former HRA properties sold under the Right to Buy, following positive financial appraisal, utilising the unallocated New Homes budget (see para 11.26 of the report).

10. Subject to the acceptance of the expression of interest to the Local Authority Housing Fund (LAHF) round 3:

a.    Authorise the Strategic Director with responsibility for Housing to enter into a revised Memorandum of Understanding with Ministry of Housing, Communities & Local Government to secure additional LAHF funding estimated at £2.841m

b.    Delegate authority to the Section 151 Officer to approve capital expenditure (subject to financial appraisal, in accordance with Financial Procedure Rule 7.4) of up to £6.0m to purchase up to 12 properties using the approved HRA unallocated new build budget, to be part-financed by LAHF grant with any balance via prudential borrowing.

c.     Authorise the Corporate Head – Asset Management and the Strategic Director with responsibility for Housing to purchase up to 12 properties. (Para 11.70-11.72 of the report) 

11. Approve the average rent increase for 2025/26 for all affordable, Shared Ownership and social housing of 2.7% based on the September 2024 CPI figure of 1.7% +1% (see para 11.6-11.7 of the report).
12. Approve amendments to HRA tenant service charges in 2025/26 to reflect cost recovery based on 2023/24 actual costs, subject to capping at 5% or £5, whichever is greater, and noting that capped charges will be subject to gradual increases in  ...  view the full decision text for item 10

Councillor Westwood introduced the report and advised that the report had been considered by Scrutiny Committee on 4 February and the minutes of that meeting had been circulated to all present and published on the web here.  The Committee had asked a number of questions which had been responded to at the meeting.  The Committee had also requested that the table concerning service charges (paragraph 11.42 of the report) be updated/annotated to provide further clarification and this had been done with a revised version of the table circulated to all members present at Cabinet.

Councillor Westwood also made reference to the consideration of the report at the TACT Board meeting of 27 January which had agreed the proposed rent increases.  TACT Board has also discussed the proposals to address the funding gap, the risk assessment information contained in the report and the consultation undertaken with tenants more widely on the proposed rent increases.

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

Councillor Lee

With reference to the council’s declaration of a nature emergency he emphasised the importance of stronger environmental considerations within the HRA budget and adopting a holistic approach to nature, carbon reduction and tenant well-being for example by introduction of green infrastructure and nature improvements.  He asked whether funding had been allocated for the replacement of boilers by heat pumps>

Councillor Horrill

She reiterated comments made at Scrutiny Committee regarding the report’s risk assessment as considered that it did not adequately reflect all the risks facing the HRA.  She welcomed the updated table on service charges.  She asked whether the outcome of the application for Local Authority Housing Fund round 3  had been received and also whether there was adequate budget provision for training for officers, noting the recent changes in the Housing Team. 

Councillor Westwood responded to the comments and questions raised, including explaining that specific detailed risk assessments were included within separate housing reports as appropriate.

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

RECOMMENDED (TO COUNCIL):

1.                  Note the HRA Financial Plan operating account, including annual working balances, as detailed in Appendix 6 of report CAB3490.

2.                  Approve the 2025/26 Housing Revenue Account budget as detailed in Appendices 1 and 2 to the report. 

3.                  Approve the proposed capital programme for maintenance, improvements and renewals totalling £167.868m.

4.                  Approve capital expenditure and delegate to the Strategic Director with responsibility for housing authority to enter into necessary contracts for the 2025/26 capital programme of £21.134m, as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4.

5.                  To approve the award of a contract, by direct award, for technology-based retrofit works of £4.3m per year in 2025/26, 2026/27 and 2027/28 (totalling £12.8m), contingent on funding secured from the Department of Energy Security and NetZero Social Housing Fund Wave 3 Grant, equivalent to 190 properties over 3 years. (See Para 11.62 to 11.65 of the report).  ...  view the full minutes text for item 10

RECOMMENDATION:

It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, ref CAB3490 which is to be considered by Cabinet on the 12 February 2025.

Councillor Chris Westwood, Cabinet Member for Housing introduced the report, ref CAB3490 which set out proposals for the Housing Revenue Account budget 2025 - 2026, (available here).  The introduction included the following points.

1.    Despite continuing budget challenges, including increased costs due to high inflation, higher interest rates, and energy costs, the report proposed a HRA budget for 2025/26 and a business plan to achieve the Council's policy objectives.

2.    These objectives included going greener faster, addressing the cost of living crisis, and maintaining the commitment to deliver 1,000 new homes.

3.    The housing service had several areas competing for available funding, including:

a)    An updated new home strategy to move towards buying as well as building.

b)    Funding to go greener faster to improve energy efficiency and promote decarbonisation of council homes.

c)    A capital programme provision for major repairs and refurbishment of existing housing stock to a decent home standard.

d)    Modernising customer service through the development of a digital-first customer journey.

e)    Moving to full cost recovery for housing service charges and water treatment service charges over a period.

4.    The Council sets its rents in line with the rent standard and the regulator's rent-setting guidelines. A 2.7% rent increase for all tenants was proposed, based on September CPI plus 1%.

5.    A budget gap of approximately £2,000,000 was identified between anticipated income and the cost of delivering housing services and had been discussed in a previous HRA budget options paper.

6.    The balanced budget was achieved by identifying approximately £2,000,000 of savings in the 2025/26 budget with minimal impact on service delivery.

7.    The Tenants and Council Together (TACT0 board had agreed to the proposed rent increase and identified cost savings at a meeting on the 27th of January 2025.

Ian Tait addressed the committee regarding the proposed development of the Corner House, a property the City Council had agreed to purchase in 2020. He highlighted the cost of the proposed conversion into six flats and asked whether a business case had been produced relating to the development. He also asked regarding the possibility of the property reverting back to a community asset.

Councillor Caroline Horrill addressed the committee and highlighted several points that could be summarised as follows. Councillor Horrill congratulated the housing team and asked about the HRA budget risk assessment, as she felt that it did not fully address some issues such as fire and gas safety. Councillor Horrill stressed the importance of tenant communication, noting the low response rate to the budget consultation. She also requested more detail on chart 11.42 and asked for better inclusion of feedback from tenants and councillors in the final budget decision. She welcomed the consideration of Barnes House for renovation.              

These points were responded to by Councillor Westwood, Cabinet Member for Housing, and Councillor Tod, Leader and Cabinet Member for Asset Management accordingly. 

The committee was asked to comment on the proposals within the attached cabinet report, ref CAB3490, which was to be considered by  ...  view the full minutes text for item 6