Agenda item

Report of the Head of Finance

Presented by the Corporate Portfolio Holder and Housing Portfolio Holder

Councillor R D Bayliss presented the report to Members, drawing their attention to the report to Cabinet attached as Appendix 1 which highlighted the results of the 100% condition survey of the housing stock and the costs associated with the additional work required.  He referred to the call-in of the item following the Cabinet meeting and advised that Policy Development Group had resolved that no further action be taken. 

Councillor S Sheahan stated that he would be supporting the recommendations, however he felt there were some important lessons to be learned.  He added that this was not a case of tax and spend, but rather spend and bend the rules as was demonstrated by the fact that the prudential indicators and the Housing Revenue Account budget were being revised so soon after being agreed.  He stated that tighter control on spending was necessary, as well as more accurate surveys and better budgetary planning.

Councillor P Hyde referred to the use of windfall income and sought clarification on how a windfall could be predicted for 2014/15.

Councillor N J Rushton stated that he was proud of what had been achieved and felt that residents would agree at the next election.  He referred to the funding provided by the Coalition Government to deliver improvements to the worst housing stock in the country and added that in four years all of the Council’s housing stock would have been renovated with no exception.  He stated that he was proud of what the officers had delivered.

In response to Councillor S Sheahan, Councillor R D Bayliss stated that the impact on the business strategy was unknown.  He explained however that the accumulation of current balances in the Housing Revenue Account budget would be offset against the maturation of loans in 9 years, which was why the additional funding could be safely drawn down to support the programme.  He added that if additional borrowing was subsequently required, this could be accommodated as there was considerable financial headroom due to careful estimating.  He stated that the housing condition surveys were accurate and explained that data had been extrapolated from a survey of a percentage of the Council’s housing stock.  In the final year of the programme, all remaining properties were surveyed and this had identified the additional work required.  He stated that he felt confident in the standard of the surveys.  He thanked Councillor S Sheahan for expediting the call-in process, and the Chief Executive for facilitating the urgent item to Policy Development Group, which enabled the report to be considered at this meeting of the Council.  He also thanked Policy Development Group for their effective review of the issue.  He urged Members to keep their promises to tenants and ensure that all properties could be made decent.

It was moved by Councillor R D Bayliss, seconded by Councillor N J Rushton and

RESOLVED THAT:

a)     The projected increase in costs associated with completing the 2014/15 Decent Homes Programme of Improvements as detailed in the report to Cabinet attached as Appendix 1 be noted.

b)     Council considers the report to Cabinet and the associated recommendation from Cabinet in relation to funding the required works and approves the revised 2014/15 Housing Capital Programme and HRA Budget as detailed in Appendix 2 and 3 of this report to fund this increase in costs, and the amended Prudential Indicators detailed in Appendix 4.

c)     Council agrees to receive a further report at its meeting on 1 July 2014 regarding the funding options to complete decent homes improvements to the additional non decent properties recently identified.