Issue - meetings

(a)       That the report and the positive programme to introduce self-financing for Council housing be noted; and

(b)       That the proposal to arrange a Member workshop to consider arrangements for the introduction of self-financing for the Housing Revenue Account be supported.

The Chief Officer (Community & Enterprise) introduced the report to update the Committee on progress with introducing self-financing for the Housing Revenue Account (HRA), following the report received in July 2014.  The report outlined the changes affecting the 11 stock-owning Councils in Wales, including Flintshire, to cease the subsidy system and to introduce self-financing from April 2015 through voluntary agreement by all 11 Councils.

Following the response to the Welsh Government (WG) consultation paper, the Chief Officer was pleased to report that all representations made by the Council had been included in the recommendations of the former Housing Minister.  Although the distribution of borrowing limits amongst the 11 Councils was yet to be announced by the WG, the introduction of self-financing would provide £1m of additional revenue funding in the HRA to invest in tenants’ homes and support the achievement of the Welsh Housing Quality Standard by 2020 as well as supporting the Council house building programme.

Members were advised of work being undertaken to develop a full project plan to prepare for self-financing and the need for arrangements for the HRA to be in place earlier than usual to enable the introduction of self-financing by 1 April 2015.  Along with a tenants’ conference to be held in the Autumn, there were plans to hold an all-Member workshop to share detailed information on the process to aid consideration of the HRA and Treasury Management Strategy at County Council.

Mrs Mavis Crofts, Chair of the Flintshire Federation of Tenants & Residents’ Association thanked the Chief Officer and her team for the consultation carried out with tenants and welcomed the explanations given on this complex topic.

In response to a query, the Chief Officer said that the borrowing needed to exit the system was affordable and that rents would not be affected as a result of this.  However, rent increases would occur to reach ‘convergence’ in line with the WG rent-setting policy.

On behalf of the Committee, the Chairman paid tribute to Mrs Crofts who was due to end her term as Chair of the Federation and expressed his gratitude for her contributions to housing issues.

RESOLVED:

(a)       That the report and the positive programme to introduce self-financing for Council housing be noted; and

(b)       That the proposal to arrange a Member workshop to consider arrangements for the introduction of self-financing for the Housing Revenue Account be supported.