Agenda item

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 setting up the Red Lion Homes Housing Association, as a special purpose vehicle, would not enable the Council to build more affordable housing any more easily than the Council could do so itself.

e.     To recognise that the reduction in rents for the poorest residents was due to the initiatives bought in by George Osbourne when he was Chancellor of the Exchequer. 

f.      To acknowledge that the excessive delays to the small housing sites programme and the delays to major works, including at Joyce Avenue were not the sign of an efficient or caring administration or an effective way to run the Housing Revenue Account. 

4.               The response from the Cabinet Member for Housing and Housing Regeneration that the previous Conservative administration should be ashamed that they had done nothing about the small sites in the 8 years they had been in power.  Labour had created a strategy, and started building: delays had been caused by the private sector failure.  This Council has raised the profile of Council housing.  On Joyce Avenue, they had apologised, and acknowledged that no one deserves to be treated badly.  It was now a top priority.  

Following the debate the recommendations in the report were agreed without a vote. 

AGREED

1.               To approve the HRA 30-Year Business Plan

2.               To approve the detailed HRA Revenue Budget for 2018/19

3.               To approve the HRA Capital Programme and Right to Buy One for One receipts programme 2018/19 to 2022/23.

4.               To note the social and affordable rent levels for 2018/19 for HRA.

5.               To approve the level of service charges for 2018/19 for those properties receiving the services.

6.               To note the heating charges for 2018/19 for those properties on communal heating systems and the change in procuring the Landlord electric contract

7.               To approve the proposals for increases in garages and parking bay rents

8.               To delegate authority to the Cabinet member for Housing and the Chief Executive to approve tenders for Major Works in order that contracts can be let and works carried out more efficiently.