Agenda item

1.    That the draft HRA Business 30-year Plan for 2023-24 to 2052-53 metrics shown in Appendix 1 of report CAB3432 be noted.

2.    That the budget options outlined within report CAB3432 be approved.

3.    That the proposed additional investment in the council housing stock of £30m over the next eight years to 2030-31 to retrofit properties on a fabric first basis to help improve their energy efficiency and reduce energy costs for tenants be noted. This additional annual investment brings the total annual investment here to £5.625m a year and £45m in total.

4.    That the proposed strategic change in direction moving from a plan based upon direct delivery of new homes to one based upon a mixture of actively acquiring s106 affordable housing directly from developers alongside future development with grant funding and using Right to Buy resources be noted.

5.    That the current financial viability assessment for new build be noted and that at present all potential development sites based on current assumptions evaluated this year have not been assessed as being financially viable within the existing viability model (see paragraphs 12.3 -12.6 of the report).

6.    That the proposed move to 80% market rent to help improve the viability of new homes development and to mitigate the increasing cost of delivery be noted.

7.    That it be noted that a revenue savings target of £400k over two years has been set to assist with bridging the forecast gap in financing future capital expenditure.

8.    That the disposal in principle of Barnes house in 2024-25 be approved, and in addition two strips of land with one surplus HRA property per year over the next eight years to generate additional capital receipts to help fund the increased investment requirement over these years.

9.    That subject to consultation, the terms of individual leases and a review of costs, the move to full cost recovery for private connections of the council’s sewage treatment works be approved and note that this will include transitional protection and be achieved within a five-year timeframe.

Councillor Westwood introduced the report and emphasised the proposals to invest in homes to support the aim of going “greener faster” in addition to reducing heating bills for tenants so as to address the cost of living crisis.

Councillor Becker declared an interest in respect of item 9 (report CAB3432) as a private householder connected to one of the council’s sewage treatment works.  She took no part in the discussion or decision on recommendation 9 of the report.

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

Ian Tait

He reiterated his comments made at the Cabinet Committee: Housing on 14 November regarding a request that the council seek to purchase land in order to build a new council house estate.  He queried the high build cost for new homes quoted in the report when the council was currently buying homes for significantly less than this in Whiteley.  He also believed that using Section 106 provisions did not increase the overall number of new homes being provided.

David Chafe (TACT)

He thanked Councillor Westwood, the Strategic Director and officers for assisting TACT in understanding the proposals included in the report.  A full TACT meeting would be held in due course in order to provide a formal response in time for consideration of the HRA Business Plan and Budget at Cabinet in February 2024.

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

Councillor Wallace

As for CAB3430 above, he believed the report should have been considered at Scrutiny Committee prior to Cabinet.  He asked the following questions: a) the implications of the proposed increase in debt to turnover ratio set out in Appendix 1 of the report; b) requested more information on how the £30m spend on retrofit would be spent; c) the implications of the new strategy to buy affordable homes; d) requested a specific standard be stipulated on reduction to energy costs; e) requested further detail on the consultation proposed in relation to sewage treatment works; f) whether the proposed rent increases had been reviewed with TACT and the Citizens Advice Bureau; g) what percentage increase was anticipated for service charges.

Councillor Horrill

She agreed with Councillor Wallace that the report should have been considered at Scrutiny Committee prior to Cabinet.  She asked the following questions: a)  did the commitment to provide 1000 new homes include new build and rural schemes? b) requested more specific reference to the ongoing maintenance of existing properties; c) asked for reassurance that the increased rent levels for the newer more energy efficient properties would not be applied to existing properties? d) what types of HRA properties were being considered for sale? e) requested further information regarding the proposals to move to full cost recovery for private connection to the council’s sewage treatment works.

Councillor Westwood responded to the points raised above, including confirming that the new higher rent proposal would not be applied to tenants living in existing properties but only to those in new build programme properties.  The Strategic Director also responded to comments made regarding the rationale for disposal of a small number of assets.

Cabinet (with the exception of Councillor Becker) agreed an amendment to recommendation 9 of the report to request that the proposals be subject to consultation, the terms of individual leases and a review of costs.  This was agreed as set out below.

With the exception of Councillor Becker who took no part in the decision on resolution 9 only, Cabinet agreed to the following for the reasons set out in the report and outlined above.

RESOLVED:

1.       That the draft HRA Business 30-year Plan for 2023-24 to 2052-53 metrics shown in Appendix 1 of the report be noted.

2.       That the budget options outlined within the report be approved.

3.       That the proposed additional investment in the council housing stock of £30m over the next eight years to 2030-31 to retrofit properties on a fabric first basis to help improve their energy efficiency and reduce energy costs for tenants be noted. This additional annual investment brings the total annual investment here to £5.625m a year and £45m in total.

4.       That the proposed strategic change in direction moving from a plan based upon direct delivery of new homes to one based upon a mixture of actively acquiring s106 affordable housing directly from developers alongside future development with grant funding and using Right to Buy resources be noted.

5.       That the current financial viability assessment for new build be noted and that at present all potential development sites based on current assumptions evaluated this year have not been assessed as being financially viable within the existing viability model (see paragraphs 12.3 -12.6 of the report).

6.       That the proposed move to 80% market rent to help improve the viability of new homes development and to mitigate the increasing cost of delivery be noted.

7.       That it be noted that a revenue savings target of £400k over two years has been set to assist with bridging the forecast gap in financing future capital expenditure.

8.       That the disposal in principle of Barnes house in 2024-25 be approved, and in addition two strips of land with one surplus HRA property per year over the next eight years to generate additional capital receipts to help fund the increased investment requirement over these years.

9.       That subject to consultation, the terms of individual leases and a review of costs, the move to full cost recovery for private connections of the council’s sewage treatment works be approved and note that this will include transitional protection and be achieved within a five-year timeframe.