Agenda item

(Report of the Director of Finance & Director of Housing Services) To update Members on the financial planning process and to consider the pre business plan reviews for the following business units: Strategy and Needs, Housing ALMO Services (HHBS & HMBU)

The Executive Member for Housing, Cllr Diakides, gave a brief introduction highlighting the two categories into which spending was divided, these being housing strategy and needs and housing ALMO services. The transition to the ALMO has led to a more ambitious agenda, with emphasis being placed on achieving a CPA two-star rating. The Executive Member highlighted the three main challenges faced by Housing Services. The housing revenue account will in the long run develop a gap between resources and expenditure due to loss of stock from right to buy and changes in government regulations, and Housing Services are working with Finance to avoid any potential problems. The repairs response unit, a need driven service which deals with 63,000 repairs per annum, has a projected overspend, which currently stands at 900k. The Government has also introduced a new system for housing capital allocations, which will lead to a substantial reduction in funding.

The Committee asked a number of questions regarding the report. The rent collection figure of 97% was queried and it was commented that the total figure represented a combination of rent owed over the year and all arrears, so the 97% figure meant that all annual rent had been collected, and the figure had increased to this level due to further arrears also being collected. The revenue from right to buy sales was discussed, and it was commented that these monies did not necessarily remain in the Housing Directorate, but could be moved to pay for other Council priorities. The need to achieve the CPA two-star rating by implementing the ALMO was emphasised as this would be the only way of gaining the £128m capital investment from the Government. The issue of new units of affordable housing was raised and it was commented that 1000 units would be delivered after the winning of a £70m bid last year. These units would be delivered in partnership with RSLs as there are not sufficient funds from the Council alone for the building of new stock. The refurbishment of Apex House was raised and it was commented that Housing would pay for the three floors covered by 200 staff in the strategy and needs unit. The water pressure reduction works were discussed, and it was commented that Haringey and Thames Water were in ongoing discussions over the level of investment needed from Thames Water. The issue of reducing void rates was raised and it was commented that the proposed reduction was realistic and the void rate turnaround was now around 40 days. The issue of savings produced from streamlined rent procedures was raised and the Executive Member commented that the simpler processes mentioned in the report would be detailed to Members before 12 December 2005.

The issue of additional posts being created for the ALMO was discussed. The Committee expressed its concern over the creation of new posts as it appeared that the Council would be subsidising the ALMO and creating more bureaucracy. The Executive Member for Housing commented that the budget was balanced due to compensatory savings elsewhere. It was agreed that a report on staffing for the ALMO would be prepared by Housing Services to answer the concerns raised by the Committee by 12 December 2005.

RESOLVED:

That the Committee approved the financial planning position set out in the report and the pre-business plan reviews covering Strategy and Needs and Housing ALMO Services. Concerns were noted over the number of new posts created for the ALMO, and it was agreed that a report would be prepared covering the ALMO recruitment costs before 12 December 2005.