Meeting documents

Apologies for absence were received from Councillors P Clayfield and R Holland.

There were no questions received.

Consideration was given to the minutes of the meeting held on 11 October 2011.

The Head of Housing and Customer Services presented the report to members, drawing their attention to the fundamental changes which would be made in respect of the financing of local government housing. He highlighted the key points of the HRA Business Plan, including the removal of the negative subsidy payments and the reallocation of national housing debt. He drew members' attention to the financing settlement as outlined at paragraph 1.11 of the report, and the summary of the business plan. He advised members that the final subsidy determination had not yet been received, and the business plan had been drafted based on provisional figures.

In response to questions from members, the Head of Housing and Customer Services explained that the HRA Reform was now compulsory for all Councils who owned their housing stock. He stated that the overall process had put all Councils in a more positive position and it was a good news story for our tenants overall, although there were significant early year rent rises as a result of the rent restructuring process.

The Head of Housing and Customer Services advised that the level of rent increase for the forthcoming year was due to regulation. He referred to the national rent restructuring policy introduced in 2002, which sought to align rents for tenants of council properties and registered social landlords by 2015/16. He advised that the guidelines set out in the rent restructuring policy were not compulsory, but the policy of overall rent convergence was, and the rent increase for a particular year could be suppressed, however this would effectively lead to a larger increase in subsequent years to attain the rent restructuring level.

A member expressed concern that the forthcoming changes to housing benefit could lead to problems for the most defenceless people in society. The Head of Housing and Customer Services advised that approximately 60 per cent of tenants were currently in receipt of housing benefit, which would cushion the effects of any rent increase. He added that a balance needed to be struck between raising income to ensure a service could be provided to support tenants, and making rents affordable.

A member referred to the options to deliver the decent homes improvement programme outlined at paragraph 8.4 of the summary, and requested an update. The Head of Housing and Customer Services advised that Cabinet had delegated the decision to officers, and a tender procurement would now be undertaken as careful review of the proposed framework agreement had identified that it would not deliver the anticipated outcomes.

Following a comment from a member, the Head of Housing and Customer Services advised that he would include redevelopment by the Council as an option to be considered for disposals/change of use at paragraph 9.6 of the business plan summary.

In response to a question from a member, the Head of Housing and Customer Services advised that the first meeting of the green and decent homes officer working group had taken place last week, and the next step would be to appoint advisors to the group.

In response to a question from a member, the Head of Housing and Customer Services explained that the HRA reform was good news for our tenants as we would receive additional income, have more flexibility, and would be repaying our own debts rather than the negative subsidy. Once the decent homes standard is attained in 2015/16, there would be an opportunity to provide innovative solutions for tenants in terms of greener homes and other improvement priorities.

The Interim Head of Finance provided an update regarding the financing arrangements. He advised that a decision would be taken by Cabinet on 7 February and a recommendation made to Council on 23rd February. A stepped approach to the repayment of debt was being recommended to provide some flexibility.

In response to a question from a member, the Interim Head of Finance confirmed that there would be no interest rate rise over the 30 year period on a fixed rate loan.

The Local Member Support Officer drew members' attention to the Forward Plan and sought suggestions for items to be included in the future work programme.

A member requested that the Council Delivery Plan be included in the work programme.

It was noted that there were no meetings scheduled at present. A date would be confirmed in due course for a meeting to consider the Council Delivery Plan.

Apologies for absence were received from Councillors P Clayfield and R Holland.

There were no interests declared.

There were no questions received.

Consideration was given to the minutes of the meeting held on 11 October 2011.

The Head of Housing and Customer Services presented the report to members, drawing their attention to the fundamental changes which would be made in respect of the financing of local government housing. He highlighted the key points of the HRA Business Plan, including the removal of the negative subsidy payments and the reallocation of national housing debt. He drew members' attention to the financing settlement as outlined at paragraph 1.11 of the report, and the summary of the business plan. He advised members that the final subsidy determination had not yet been received, and the business plan had been drafted based on provisional figures.

In response to questions from members, the Head of Housing and Customer Services explained that the HRA Reform was now compulsory for all Councils who owned their housing stock. He stated that the overall process had put all Councils in a more positive position and it was a good news story for our tenants overall, although there were significant early year rent rises as a result of the rent restructuring process.

The Head of Housing and Customer Services advised that the level of rent increase for the forthcoming year was due to regulation. He referred to the national rent restructuring policy introduced in 2002, which sought to align rents for tenants of council properties and registered social landlords by 2015/16. He advised that the guidelines set out in the rent restructuring policy were not compulsory, but the policy of overall rent convergence was, and the rent increase for a particular year could be suppressed, however this would effectively lead to a larger increase in subsequent years to attain the rent restructuring level.

A member expressed concern that the forthcoming changes to housing benefit could lead to problems for the most defenceless people in society. The Head of Housing and Customer Services advised that approximately 60 per cent of tenants were currently in receipt of housing benefit, which would cushion the effects of any rent increase. He added that a balance needed to be struck between raising income to ensure a service could be provided to support tenants, and making rents affordable.

A member referred to the options to deliver the decent homes improvement programme outlined at paragraph 8.4 of the summary, and requested an update. The Head of Housing and Customer Services advised that Cabinet had delegated the decision to officers, and a tender procurement would now be undertaken as careful review of the proposed framework agreement had identified that it would not deliver the anticipated outcomes.

Following a comment from a member, the Head of Housing and Customer Services advised that he would include redevelopment by the Council as an option to be considered for disposals/change of use at paragraph 9.6 of the business plan summary.

In response to a question from a member, the Head of Housing and Customer Services advised that the first meeting of the green and decent homes officer working group had taken place last week, and the next step would be to appoint advisors to the group.

In response to a question from a member, the Head of Housing and Customer Services explained that the HRA reform was good news for our tenants as we would receive additional income, have more flexibility, and would be repaying our own debts rather than the negative subsidy. Once the decent homes standard is attained in 2015/16, there would be an opportunity to provide innovative solutions for tenants in terms of greener homes and other improvement priorities.

The Interim Head of Finance provided an update regarding the financing arrangements. He advised that a decision would be taken by Cabinet on 7 February and a recommendation made to Council on 23rd February. A stepped approach to the repayment of debt was being recommended to provide some flexibility.

In response to a question from a member, the Interim Head of Finance confirmed that there would be no interest rate rise over the 30 year period on a fixed rate loan.

The Local Member Support Officer drew members' attention to the Forward Plan and sought suggestions for items to be included in the future work programme.

A member requested that the Council Delivery Plan be included in the work programme.

It was noted that there were no meetings scheduled at present. A date would be confirmed in due course for a meeting to consider the Council Delivery Plan.