Members will receive a presentation at the Panel meeting.

(7.05 – 7.55)

Councillor Birsen Demirel (Chair) invited Joanne Drew (Director of Housing and Regeneration) to the meeting and invited her to present the information being provided to the Panel on the Housing Revenue Account – Updated Business Plan. Councillor Demirel also welcomed Councillor Nesil Caliskan (Leader of the Council) to the meeting who was present to respond to questions raised and provide any further clarification required.

A detailed presentation followed with questions raised by the Panel Members. A copy of the presentation slides had been provided to the Panel in advance of the meeting. The discussion and presentation in summary included the following points.

NOTED

1.            That the presentation outlined the context including the external factors that affected Council housing; an introduction to the Housing Revenue Account (HRA); the HRA ringfence and what it means; a review of year 2020/21; the revised Strategy for 2021/22 and beyond; and, a financial summary.

2.            The national policy framework and the forthcoming Social Housing White Paper which would provide increased enforcement powers to the Regulator for Social Housing and the Social Housing Ombudsman. The strong voice of residents; funding mechanisms for new homes; impact of the Building Safety Bill; and, investment in Green Homes were explained in detail to the Panel.

3.            The detailed information provided in the presentation explaining the Housing Revenue Account, including the numbers of properties involved and the relevant financial information. An explanation was given on all of the financial aspects of the HRA including the borrowing levels, investment in new housing and how income was generated. The Council had a significant planned development programme over the next 10 years. The requirements for and limitations on both capital and revenue expenditure were outlined.

4.            That the HRA was a ring-fenced account within the general fund and was used to support the Council’s landlord function. Joanne Drew explained what the HRA could be used for.

5.            A review of 2020/21 as outlined in the presentation including delivering a development and regeneration programme; major works programme; health and safety compliance; and, stock disposals of £1m. In addition, the level of reserves; operating efficiencies; de-pooling of service charges; the launching of Enfield Repairs Direct; and support to residents were explained in detail.

6.            In response to questions raised, the service charges in relation to sheltered housing were explained in detail.

7.            Councillor Nesil Caliskan (Leader of the Council) outlined the long-term challenges of the HRA and the additional pressures that had resulted from the pandemic including general economic instability and the impact on the Council’s finances. The Government had introduced significant funding changes which presented additional challenges to the Council in meeting its estate renewal and housing provision aspirations. There were many factors beyond the Council’s control including the impact of Brexit and the volatile housing market.

8.            The presentation continued looking at the Strategy for 2021/22 covering the areas of development; investment in Council Homes; and, investment in quality housing services. The financial challenges were set out. The long-term housing aspirations were outlined in detail.

9.            The acute housing pressures in Enfield and demand for social housing provision. The Council’s role and aspirations going forward were explained.

10.         The implications of the proposed Social Housing White Paper which had been considered at the Housing Scrutiny Panel.

11.         The governance processes followed in monitoring the HRA revenue and capital budgets as set out in the presentation.

12.         The projected detailed financial forecasts for 2021/22.

13.         In response to questions raised by Members of the Panel, Councillor Caliskan and Officers clarified and explained a number of issues during discussion including: an update on the proposals relating to the Snells and Joyce regeneration covering the funding implications for the scheme, the timetable for progression and resident engagement proposals.

14.         The challenges to be met regarding climate changes objectives were questioned and explained. Officers detailed the pilot schemes that were proposed and the challenging funding sources which the Council had to bid for. The Council would continue to adopt a proactive approach. The long-term aspirations were noted. It was further explained that the costs and technologies available would be kept under constant review and the business plan updated regularly.

15.         The key assumptions that were made in the Business Plan and the many factors that were subject to change and were beyond the Council’s direct control. Regular monitoring and review would continue to take place. This was a long-term plan that would continue to be subject to adaptation and change as necessary.

16.         That the updated HRA 30-year business plan was due to be considered at the February Cabinet and full Council meetings. The changes to the Plan would also be reflected in the ten-year Capital Strategy and Treasury Management reports. The revenue and capital budget position would continue to be reported to Cabinet on a quarterly basis.

17.         In response to questions raised, a discussion took place on the revised planned number of housing units to be delivered and the flexible approach that was required in order to be able to adapt to changing circumstances and funding sources available. The Council’s aspiration  of maximising the housing supply available to meet the growing needs and pressures being experienced in Enfield was reiterated. Regular reviews of the programme would take place and changes made as necessary.

18.         The significant work which had been and would continue to be undertaken in order to fulfil the Council’s housing aspirations and plans. All options available to the Council would be fully explored and effective partnership working developed, for example, with registered housing providers in the Borough.

19.         The active role that the Council had adopted in housing provision and the clear commitments of the Council’s Administration as outlined to Members by Councillor Nesil Caliskan (Leader of the Council).

20.         That the HRA Business Plan was in line with the objectives of the Council Plan and was based on robust and resilient financial modelling.

21.         In conclusion, Councillor Demirel (Chair) thanked Councillor Nesil Caliskan (Leader of the Council) and Joanne Drew (Director of Housing and Regeneration) for their attendance and informative and detailed presentation to the Panel.