Agenda item

6.1

The Committee received a report of the Executive Director, Communities, which provided an overview of some of the recent developments affecting the Housing Revenue Account (HRA) Business Plan and some of the considerations for the Business Plan Update 2015/16.  The report was presented by Liam Duggan, HRA Business Plan Team Manager.  Tenant representatives, Mick Daniels and Tony Watson were also present for this item. 

6.2

Members and the tenant representatives made various comments and asked a number of questions, to which responses were provided as follows:-

·                Following feedback from tenants about the Going Local proposals, the allocation of Going Local funding was now being described at a City-wide level.  In 2012/13, some of this funding had been transferred to heating budgets, as there was a heating backlog.  There was a large Going Local budget of £800,000 and tenants felt that this was the right thing to do.  It was emphasised that money had not been taken away from tenants.

·                It would be necessary to review the consultative budget as the guidance was old and it was administered differently in different housing areas.

·                In relation to the Government relaxing its expectations on local authorities with regard to charging a social rent for high earners, part of the problem was that the Council had no data on tenants’ income and the administrative burden of charging a market rate was not felt to be worth any potential benefits.  It was also felt that this could lead to disincentivising mixed communities.

·                Officers were not aware of any proposals for the Council to be empowered by Government to suspend Right to Buy policy locally.

·                The final Business Plan Report would include reference to vacancy management, with there being a slight deterioration in performance last year due to issues such as the bedroom tax and changes to temporary accommodation, but with measures in place on some estates, the position was improving this year.

·                There was a shortage of 4-bed Council properties, with less than 1% of Council housing being of that type.  However, it was not generally affordable for the Council to purchase these larger properties and then charge a social rent.  Affordable rent might have to be considered in such situations.  In addition, the benefit cap was more of an issue for large families.

·                A strategy had been developed for buying properties on the open market and the policy was to charge a social rent where possible.  Consideration was also being given to buying former Right to Buy properties. 

·                The model for photovoltaics was to install the panels as part of the roofing contract on new roofs.  This avoided having to use further scaffolding and was of benefit to the householder in terms of the free energy.  The feed-in tariff from the energy companies was money which the HRA would seek to recover.  There were sensitivities around issues such as the amount of sunlight and maintenance, but the Council would be looking to recover the cost over a 25 year period. 

·                Officers were aware of the success of the use of photovoltaics in Kirklees and some had visited authorities which had installed them to assess how schemes operated.

·                It was emphasised that the submitted report was part of pulling together the Business Plan and that the issue of vacant properties was not on the frontline of issues to be covered.  At the consultation meetings, it was suggested that residents could identify such properties for officers’ consideration but nothing had been heard further on this.

·                There was a team in place which was leading on the issue of photovoltaics and building up a network of contacts, with updates being obtained from other authorities.  In relation to the process for decision making, there had been consultation and discussion with tenants and Members, following which recommendations would be made by Cabinet, which would ultimately be considered by Council.

·                The setting of the Going Local budget and principles would be covered as part of the Business Plan process, with the Housing and Neighbourhoods Service then drafting more detailed guidelines once the budgets and principles had been approved. 

·                Consultation feedback from tenants had included advice that external works needed attention in the communal areas in Gleadless Valley.  The Business Plan contained a commitment to carry out work on entry doors, stair wells, safety and general repairs.  In addition, consideration needed to be given in future to wider issues, such as linking the Streets Ahead programme with the external environment.

·                There had been positive feedback from the Education and Enforcement pilot on the Lansdowne estate and permanent posts were being looked at in this regard. 

·                The purpose of the report was to pick out the big headings involved.  It was in this format as the Committee had asked to see it at this stage, so that Members could comment prior to seeing the finished article.

·                From a Business Plan perspective, it was important to look at financial performance and procurement savings in relation to repairs and ensure that this came through, but there was not so much on quality and performance in relation to the customer experience in this respect.

·                In relation to the installation of photovoltaic panels, issues such as the economic situation, changes to feed-in tariffs and economies of scale would need to be seriously considered.

6.3

In conclusion, the tenant representatives commented on the new charging structure for Sheltered Accommodation, the Going Local budget, the residual levy, vacant properties, Bring Out Your Rubbish Days and the new Kier repairs contract. 

6.4

RESOLVED: That the Committee:-

(a)       thanks Liam Duggan, Mick Daniels and Tony Watson for their contribution to the meeting;

(b)       notes the contents of the report and responses to questions; and

(c)        requests that:-

(i)          further work be undertaken with tenant representatives to ensure that the final Business Plan proposals reflect tenants’ views and that steps be taken to ensure that tenants’ questions were answered and that they were kept informed of developments;

(ii)        officers provide statistics for vacant properties at local meetings; and

(iii)       further consideration be given to the Sheltered Housing Service Charge to see if anything more could be done to soften the impact on tenants who would lose their transitional protection and, if nothing could be done, that an explanation of this be included in the Cabinet report; and

(d)       welcomes the proposals regarding photovoltaics, but recognises the affordability issues involved and seeks reassurance that this would not be detrimental to the Business Plan in future.