Issue - meetings

[Report of the Director of Finance. To be introduced by the Cabinet Member for Finance and Strategic Regeneration.]

Cabinet approval sought  for additional housing revenue capital expenditure  for the remainder of 2019-20.  This will be to increase the level of budget within the capital programme for  the construction of new build properties, the acquisition of homes on new build schemes and the acquisition of existing properties to house homeless households. This report will also  address the revenue  implications. This  report will be for onward  approval  by  Full council in November.

The Cabinet Member for Finance and Strategic Regeneration introduced the report which proposed increasing the Housing Revenue Account’s (HRA) Capital Programme funding envelope to finance the construction of new build properties; the acquisition of new build properties for affordable housing and the acquisition of existing properties to house homeless households.

This was an essential step in ensuring that the Council can deliver on key housing commitments. The additional funding would also allow the Council to acquire properties to house homeless households – and re-municipalise former Council homes lost under the right to buy over the past few years.

The Cabinet Member referred to paragraph 4 on the options that were considered when considering these proposals and highlighted the statutory officer comments contained in the report at section 8, including equalities comments.

In response to questions from Cllr das Neves, the following information was provided:

• The Cabinet Member was satisfied with the proposals and referred to section 8.13 which contained a financial table with a breakdown of the proposed allocations of HRA capital funding. The Cabinet Member felt that there were good reasons for this course of action and this would allow the Council to take advantage of certain new acquisitions that come to the Council’s attention as well as potential sites, and also enable the acquisition of street properties to increase Council housing stock .The Cabinet Member was confident that the Council would be embarking on a course that was of benefit to people in the borough seeking housing and tackling homelessness.

• Noted that the additional £12.8m funding was for construction of new build properties and the acquisition of new build properties for affordable housing. There was supporting analysis in the paper regarding the two primary components for acquisitions and development.

• In relation to the question on the precise figure for Right to Buy projections and the precise projection on the available funding, the report referred to the sum being adequate but did not reference how much was available. The Director for Finance agreed provide this information in writing to Cllr das Neves.

• With regard to impact on rents for tenants, the change to the HRA capital  programme for new homes built and acquisitions was in effect bringing forward what the Council would have spent in later years on housing. The report provided understanding on how the business plan accommodates this by the time the financial year of 2020/21 is reached. With regards to TA accommodation there was a business plan focused on affordability without impacting on tenants.

RESOLVED

To recommend to Full Council that it approves additions to the 2019/20 HRA capital programme of £70.4m to finance: the construction of new build properties (£4.1m); the acquisition of new build properties for affordable housing (£8.7m) and the acquisition of existing properties to house homeless households (£57.6m).

Reasons for decision

On 10 September 2019, Cabinet approved a re-profiled HRA capital budget of £77.8m, for 2019/20. This included £62.8m for existing stock, £2.9m for the Council housing delivery  ...  view the full minutes text for item 73