Agenda item

(a)       That the final outcome of the negotiations to introduce self-financing for the HRA to ensure that plans to deliver WHQS by 2020 can be achieved alongside commencement of a new build programme be noted.

(b)       That the Committee receive regular monitoring reports on the programme of efficiencies and the Risk Register.

The Chief Officer introduced an update report on the final outcome of arrangements to introduce self-financing for the Housing Revenue Account (HRA) and the long-term strategic plans for stock improvement and development of new council homes.  In detailing the background, she explained that negotiations between the UK Government, Welsh Government (WG) and the eleven stock-retaining councils to end the negative subsidy system had resulted in agreement on a borrowing cap and buy-out payment.  The outcome of the self-financing arrangements meant that Flintshire’s share of the buy-out settlement figure was £79.2m with a total borrowing cap on the HRA of £143.9m.  Due to the drop in interest rates, WG had agreed an artificial rate which meant that the HRA share of the Council’s total borrowing was lower than predicted at the budget-setting stage, creating an additional benefit of around £0.5m per annum to the HRA.  Subject to the business plan proceeding as expected, there would be sufficient resources to meet the Welsh Housing Quality Standard (WHQS) by 2020 and to support the Council’s new build programme, on which a detailed update would be brought to the next meeting.

The Senior Manager, Council Housing gave an overview of planned actions to mitigate the ongoing risk areas identified in the report, which would be subject to monitoring.

Councillor Rosetta Dolphin passed on tenants’ concerns in relation to a particular contractor with whom complaints had been raised over their work.  Whilst the Chief Officer felt that some complaints were inevitable given the scale of the work programme, she said that those raised to date had not been significant and would be resolved positively.  She agreed to follow up the issues raised by Councillor Dolphin and on a similar matter by Councillor Peter Curtis.

Councillor Ian Dunbar thanked officers for the glossary of terms within the new report format and welcomed the introduction of self-financing which would benefit the Council over the longer term.  In response to a query, the Chief Officer provided clarification on the terms of the self-financing agreement.

Concerning the WHQS, Councillor Marion Bateman asked whether tenants with long-term arrears would benefit from the programme of improvements at the same time as other tenants.  The Senior Manager, Council Housing confirmed that the aim was for every property in the programme to receive upgrades, regardless of this.

The Chief Officer reminded the Committee that the approach - previously agreed with the support of the Cabinet Member - was to defer WHQS improvements where legal action was being taken on breaches of tenancies in respect of anti-social behaviour issues, including damage to property.  If Members wished to extend this further to include tenants with long-term rent arrears, this could be considered along with any cost implications.  She asked that Councillor Bateman liaise with her outside the meeting regarding a particular tenant in her ward.

Following a suggestion by the Facilitator, the Committee agreed to receive regular reports on the programme of savings/efficiencies as part of the HRA budget together with the ongoing risks identified in the report.

RESOLVED:

(a)       That the final outcome of the negotiations to introduce self-financing for the HRA to ensure that plans to deliver WHQS by 2020 can be achieved alongside commencement of a new build programme be noted.

(b)       That the Committee receive regular monitoring reports on the programme of efficiencies and the Risk Register.