Issue - meetings

Recommendations (part 1) were chaired by Diana Minns (Vice Chair /Tenant Representative) and recommendations (part 2) were chaired by Councillor Todd-Jones

 

Matter for Decision

The Housing Revenue Account (HRA) Medium Term Financial Strategy (MTFS) provided an opportunity to review the assumptions incorporated as part of the longer-term financial planning process, recommending any changes in response to new legislative requirements, variations in external economic factors and amendments to service delivery methods, allowing incorporation into budgets and financial forecasts at the earliest opportunity.

 

Decision of Executive Councillor for Housing (part 1)

     i.        Approved the Housing Revenue Account Medium Term Financial Strategy attached, to include all proposals for change in:

•        Financial assumptions as detailed in Appendix B of the document.

•        2019/20 revenue budgets and future year forecasts as introduced in Section 5, resulting from changes in financial assumptions and the financial consequences of change and the need to respond to unavoidable pressures, as introduced in Section 5, detailed in Appendix D of the document and summarised in Appendices G (1) and G (2).

•        The level of fees charged to new build schemes by the Housing Development Agency, as detailed in Section 7 of the Housing Revenue Account Medium Term Financial Strategy.

    ii.        Approved that delegated authority be given to the Strategic Director to be in a position to confirm that the authority can annually renew its investment partner status with Homes England.

 

Decision of Executive Councillor for Housing (part 2)

 

   iii.        Approved proposals for changes in existing housing capital budgets, as introduced in Sections 6 and 7 and detailed in Appendix E of the document, with the resulting position summarised in Appendix H, for decision at Council on 17th October 2019.

 

  iv.        Approved the revised funding mix for the delivery of the Housing Capital Programme, recognising the latest assumptions for the use of Devolution Grant, Right to Buy Receipts, HRA Resources, Major Repairs Allowance and the specific use of Section 106 Funding for investment in affordable housing against the Campkin Road scheme.  

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

 

The Committee received a report from the Assistant Head of Finance / Business Manager.

 

The Committee made the following comments in response to the report:

     i.        The Committee praised the work of the Revenue and Benefits team in assisting tenants to negotiate welfare reforms.

    ii.        Expressed concerns that welfare loans needed to be repaid in a short time frame.

 

The Assistant Head of Finance / Business Manager said the following in response to Members’ questions:

     i.        Confirmed that there were a number of unknowns and some assumptions might change.

    ii.        Clarified the situation regarding recharging leaseholders for fire safety work. Decisions would be made on a case by case basis and consultations would be undertaken.

   iii.        Confirmed that no significant rental arrears related to welfare reforms had been noted so far. However, it was difficult to predict the impact of the full role out of reforms.

  iv.        Confirmed that support was in place for tenants experiencing benefit difficulties. It was noted tenants of working age, with fluctuating working patterns, were experiencing difficulties.

   v.        Confirmed that detailed mapping work was on-going regarding demolition and reprovision of no longer ‘fit for purpose’ stock. Decisions would always be a balancing act between providing more homes and maintaining the existing portfolio in good order for the future. The Executive Councillor for Housing stated that a report was expected early next year regarding the next 1,000 new homes.

 

Councillor Porrer proposed and Councillor Cantrill seconded the following amendment:

 

In the light of the recent Climate Change Emergency declared by Cambridge City Council, to redraft this document to prioritise environmental concerns, in particular focusing on a revised financial strategy taking into account specific environmentally sustainable solutions to ongoing maintenance and replacements, including procurement.  This would include costing replacing gas heating with alternative methods in new and refurbished properties, prioritising and costing the retrofitting of properties with current Energy Efficiency Ratings of D, E or F and considering the costs of new homes to meet higher environmental standards.   As part of this work, the estimated reduced costs to tenants of any such improvements in lower utility bills should be included.

 

The Strategic Director (SH) confirmed that the Council was already committed to measures to replace gas boilers and improve the energy efficient of poorly performing homes. Redrafting the strategy at this stage would be a major piece of work.

 

Councillor Cantrill stated that a holistic approach was needed. Energy efficiency ratings were unknown for many properties. Officers could model a higher debt profile to achieve upgrades for existing homes and higher standards for new properties.

 

Assistant Head of Finance / Business Manager confirmed that there was no longer a cap on borrowing but the HRA would need to be able to sustain the debt from its own revenue stream.

 

The Strategic Director (SH) suggested that rather than amend the report, a commitment to improve the eco performance of council homes be noted and a further report on this matter be brought to this committee no later than the autumn of 2020.

Councillor Porrer expressed satisfaction that this would influence the future strategy and was a priority. She withdrew the proposed amendment. 

 

The Committee resolved by 10 votes to 0 to endorse the recommendations (1.1 and 1.2) of the officer’s report.

 

The Committee resolved by 5 votes to 0 to endorse the recommendation (2.1 and 2.2) of the officer’s report.

 

The Executive Councillor approved the recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

No conflicts of interest were declared by the Executive Councillor.