Agenda item

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 the Cabinet on 12 February 2025.

The committee proceeded to ask questions and debate the report. In summary, the following matters were raised.

1.    The process for developing business cases for property purchases.

2.    Further information regarding the £2,000,000 forecast underspend.

3.    Whether feedback from the Cabinet Committee: Housing would be included in the report.

4.    Further information regarding the £82 million that required refinancing.

5.    A wider rollout of Photovoltaics across the district.

6.    The tenant service charges and whether the charges were clear and transparent.

7.    When moving to full cost recovery, were tenants aware of what that's likely to mean for them?

8.    The right to buy changes and the number of properties that have been proposed to be bought by tenants.

9.    The future employment of a quantity surveyor at the Council.

These points were responded to by Councillor Westwood, Cabinet Member for Housing, Councillor Tod, Leader and Cabinet Member for Asset Management, Laura Taylor, Chief Executive, Simon Hendey, Strategic Director and Liz Keys, Director (Finance) accordingly.

RESOLVED

1.    That the report be noted.

2.    That the table concerning service charges (11.42) be updated/annotated to provide further clarification.

3.    That the Cabinet Member review the points raised regarding the Corner House property and if required provides further feedback to the committee.

4.    That the Cabinet Member considers whether relevant, recent feedback from TACT and/or the Cabinet Committee: Housing be made available to the cabinet when it meets on 12 February 2025.

5.    That cabinet considers the committee’s comments raised during the discussion of the item.