Issue - meetings

To receive the joint report of the Executive Director of Place and Executive Director of Resources presenting for approval the revenue estimates of the Housing Revenue Account (HRA) for 2020/21, Business Plan Budget 2020/21 and rent setting and service charges.                                 

(Report No:193A)

(Key Decision – Reference No: 5008)

Members are asked to note that this report was considered by Cabinet on 12 February 2020 and recommended to Council. 

RECEIVED the report of the Executive Director Place and Director of Finance, on the Housing Revenue Account (HRA) Business Plan Budget 20/21, Rent Setting and Service Charges.  (Report No: 190A)

NOTED

1.            That the recommendations in the report had been endorsed and approved for recommendation onto Council by Cabinet on 12 February 2020.

AGREED

1.            To approve the HRA 30-Year Business Plan shown in Appendix 1

2.            To approve the detailed HRA Revenue Budget for 2020/21

3.            To note the 10-year HRA Capital Programme and additional borrowing requirements to deliver 3,500 additional units

4.            To note the social and affordable rent levels for circa.10,100 properties in 2020/21 and note the London Affordable Rent levels applicable for new homes to new tenants

5.            To Approve the level of service charges for 2020/21 for those properties receiving this service.

6.            To Approve the new pricing structure for Community Halls and Garages as outlined in paragraph 3.46 of the report

7.            To note changes to the Landlord consent process and introduction of tiered application fees for 2020/21

8.            To approves increasing the Under-Occupation incentive to support the downsizing strategy as shown in paragraph 3.66.  In addition, delegate to Director of Housing and Regeneration to increase the incentive aiming

9.            for flexible, bespoke packages that meet the needs of vulnerable

10.         tenants on a case by case basis by up to £2,000 per case.

11.         To approves the Leaseholder Ground Source Heat Pump charging proposal outlined in paragraph 3.78.

12.         To note the change in Thames Water billing, from the Council collecting the charges to Thames Water directly charging residents outlined in paragraph 3.88.

13.         To note the heating charges for 2020/21 for those properties on communal heating systems. heating systems.

Councillor Laban, Leader of the Opposition, indicated that if there had been a vote the Opposition Group would have voted against this report. 

To receive the joint report of the Executive Director of Place and Director of Finance Services presenting for approval the revenue estimates of the Housing Revenue Account (HRA) for 2019/20, Business Plan Budget 2019/20 and rent setting and service charges.                                  (Report No: 163)

(Key Decision – Reference No: 4741)

Members are asked to note that this report was considered by Cabinet on 13 February 2019 and recommended to Council. 

Councillor Lemonides proposed and Councillor Needs seconded the report of the Executive Director Place and Director of Finance, on the Housing Revenue Account (HRA) Business Plan Budget 19/20, Rent Setting and Service Charges.  (Report No: 237)

NOTED

1.            That the recommendations in the report had been endorsed and approved for recommendation onto Council by Cabinet on 13 February 2019.

2.            Issues highlighted by Councillor Lemonides in presenting the report: 

a.    The report presents the Council’s 30 year business plan, the revenue budget for 2019/20 the five year capital programme, the right to buy one to one receipts programme and the service charges for 2019/20. 

b.    The report reflects changing government legislation allowing the borrowing cap to be lifted which will enable the Council to borrow  more money to provide affordable housing.

c.    The Council will also be investing £125m over the next 5 years in major works to stock on fire safety, decent homes and environmental improvements and £44.7m on estate renewal. 

d.    The government needs to listen more to reverse the roll out of universal credit, prevent homelessness and take away the need for food banks.

e.    Increases in heating charges were as a result of rising costs. 

3.            Issues highlighted by Councillor Smith in responding to the report:

a.    While being happy to support the report and agreeing with the methodology and investment proposals he had some concerns about the slow progress being made and the quality of the project management.

b.    To acknowledge that it was a Conservative Government which had lifted the borrowing cap.

c.    Concern that the administration should have asked for more grant from the GLA as £18m was significantly less than other London boroughs.

d.    Concern that more money should be being channelled to housing associations which had the expertise to provide housing, rather than for in house projects.

e.    Increased borrowing will reduce revenue. 

4.    Comments from the Majority Group:

a.    The Labour administration was investing in improving the lives of many residents by providing decent homes and investing in fire safety.  Estate renewal helped local people. 

b.    Improvements were being made on the estates and stock levels were increasing. 

c.    The new in house team would work with contractors to ensure a better service.  This would be cost neutral.  

5.            Comments from the Opposition Group:   

a.    Concern about the poor performance in housing over the last 8 years and the poor management and the poor standard of the work carried out on repairs.

b.    Concern about the increase in borrowing.   

c.    Concern about the many problems reported by residents living on the estates. 

d.    Concern about the delays to projects such as the small housing sites.                             

6.            The response from the Cabinet Member for Housing that the Council had received money from the GLA in grants and that the Council had never had to return any of their right to buy receipts.  That while he recognised the issues raised he highlighted that 70% of council homes were now up to decent  ...  view the full minutes text for item 9

To receive the joint report of the Executive Director of Finance, Resources and Customer Services and Executive Director of Regeneration and Environment presenting for approval the revenue estimates of the Housing Revenue Account (HRA) for 2018/19 and the updated position on the HRA 30 year business plan.                                                               (Report No: 146)

(Key Decision – Reference No: 4586)

Members are asked to note that the recommendations in the report are due to be endorsed and approved for recommendation onto Council by Cabinet on 14 February 2017.

Councillor Oykener proposed and Councillor Lemonides seconded the report of the Chief Executive and Executive Director of Finance, Resources and Customer Services on the Housing Revenue Account (HRA) Business Plan Budget 18/19, Rent Setting and Service Charges.  (Report No:  146)

NOTED

1.               That the recommendations in the report had been endorsed and approved for recommendation onto Council by Cabinet on 14 February 2018.

2.               Issues highlighted by the majority group: 

a.     The report presents the Council’s 30 year business plan, the revenue budget for 2018/9 the five year capital programme, the right to buy one to one receipts programme and the service charges for 2018/19. 

b.     Resources are tightly constrained with only £8m headroom but the accounts were balanced, despite the lack of support from Government which had made setting the budget extremely difficult. 

c.     The Housing Revenue Account had been affected by many new policy initiatives including the right to buy.  The Council used to sell 8 properties a year and now sells 200.  This year Enfield had managed to spend all its right to buy receipts although this had been complicated to achieve. 

d.     Additional monies had been set aside in response to the Grenfell Tower disaster: £8.4m for sprinklers, which despite promises, the Government were refusing to fund.  Efficiency savings of £333,000 had been found and a capital programme of £237m for 5 years proposed: including estate renewal schemes and major works.   

e.     Rents had been reduced by 1% this year and would be again next year.  From 2020 they would increase by 1%.  Service charges had been recalculated and reduced in some cases.  Because of the volatile energy market, electricity prices had been increased by 6% overall, gas by 3% and oil by 2%. 

f.      Since he had been made aware of the issues at Joyce Avenue, Councillor Oykener had visited the properties, made it a top priority to identify the problems and ensured that works were currently being undertaken. 

g.     Thanks to officers for navigating the unusual complexities to ensure that a balanced budget could be produced and navigating the 13 new government interventions, full details of which still have not been  published, several elements being deferred, creating high risks to the HRA. 

h.     Praise for the decisive and responsive leadership of Councillor Oykener.

3.       Issues highlighted by the Opposition Group:                                 

a.     The need to recognise that the HRA was in a good financial position and the capital programme fully funded, thanks to the Government for listening and for their generosity in providing extra housing funds. 

b.     Concern that most of the receipts from right to buy were not being used to provide new stock, but on buying second hand homes.

c.     That the Grenfell Tower disaster was not a result of cost cutting by the London Borough of Kensington and Chelsea, but was more likely to have been caused because the materials used for cladding had not been properly tested.  Any sprinklers installed would need to be maintained. 

d.     Concern that  ...  view the full minutes text for item 8