Agenda item

The Economy and Housing Policy Committee are asked to comment on the proposals contained within the attached Cabinet Report, ref CAB 3523

Councillor Mark Reach, Cabinet Member for Good Homes, introduced the report, ref CAB3523, which set out the Housing Revenue Account (HRA) Business Plan and budget options. The introduction included the following points:

1.    The paper presented a balanced and viable HRA business plan that protected tenants' money.

2.    The main pressures on the HRA were macroeconomic factors, particularly interest rates and inflation, which impacted the HRA's £200 million debt. Consequently, the interest rate assumption was increased from 5% to 6%.

3.    Other financial pressures included a £1 million allocation to retrofit approximately 30 properties.

4.    Appendix 2 of the report outlined proposals for expenditure reductions, which were ranked according to their deliverability and would require further work to be fully developed.

The Economy and Housing Policy Committee was asked to comment on the proposals contained within the attached Cabinet Report, ref CAB 3523. The committee proceeded to ask questions and debate the report. In summary, the following matters were raised.

1.    A question was asked regarding the timing of the report's presentation to the committee, after it had previously been considered by the Scrutiny Committee and Cabinet.

2.    Clarification was sought on the potential impact on tenants resulting from the proposed savings in Appendix 2, specifically the reduction in the estates improvement budget.

3.    A question was raised as to whether the risk of the stock condition survey not being ready in time to inform the major repair programme had been included as a costed risk within the financial projections.

4.    It was asked whether the proposed rent increase of CPI plus 1% was mandated by central government or if the council had discretion regarding it.

5.    A question was asked about the cumulative effect of CPI plus 1% rent increases on tenants and the potential impact on hardship and rent recovery rates.

6.    Further detail was requested on which specific service charges were expected to increase “significantly” as referenced in the report.

7.    Clarification was sought on whether service charge increases would affect all residents equally or be concentrated on certain tenants.

8.    A question was asked if anticipated additional costs associated with Awaab's Law, concerning responsiveness to damp and mould, were covered within the budget.

9.    A question was asked about the expected benefits, both for customer service and financially, from the implementation of the new MRI software module.

10.Clarification was sought on the benefits of having the stock condition survey in place in terms of future operational efficiency.

11.It was asked if any costs associated with the new maintenance contract had been factored into the financial plan.

12.An explanation was sought for the drivers behind the increase in turnover of void properties.

13.A query was raised as to whether the committee would undertake a more detailed review of the 30-year business plan, as Appendix 3 only detailed new builds until 2031/32.

These points were responded to by Simon Hendey, Strategic Director, and Councillor Mark Reach, Cabinet Member for Good Homes, accordingly.

RESOLVED:

1.    That the report and the proposed budget options be noted.

2.    That the Chairperson and officers consider adding a review of the HRA's 30-year business plan, particularly concerning the new build programme beyond 2032, to the committee's forward work plan for the next municipal year.

3.    That the Cabinet Member consider the committee's comments raised during the discussion of the item.