Issue - meetings

Cabinet approved the Housing Revenue Account (HRA) Medium Term Financial Strategy (MTFS) as set out in Appendix 1 to the report from the Head of Finance, to include:

·      changes in financial assumptions as detailed in Appendix B to the HRA MTFS

·      mid-year revenue budget changes, as detailed in Appendix D(1) to the HRA MTFS, which impact future forecasts for the HRA.

·      mid-year capital budgets changes, as detailed in Appendix E to the HRA MTFS, to include recognition of the virement of resource of £1,560,000 from the unallocated acquisition / new build budget for the acquisition of market dwellings, to ensure that right to buy receipts are appropriately reinvested in 2018/19

·      updates in the new build budget and the new build schemes included in the Housing Capital Investment Plan, incorporation of the latest budgetary figures in respect of approved new build schemes, inclusion of new pipeline schemes with associated budgetary provision and re-phasing of expenditure in line with anticipated build timetables

·      changes in anticipated receipt and use of capital resources for the HRA, as included in Appendix H to the HRA MTFS

·      approval of the HRA budget strategy for 2019/20, to include the exemplification of efficiency savings of £142,000, to facilitate the creation of a corresponding strategic investment fund also of £142,000 for 2019/20, with both reducing to £95,000 per annum from 2020/21 onwards for a further 4 years.

·      noting the early proposals for bids and savings in the HRA, as detailed in Appendix D (2) to the HRA MTFS in advance of formal consideration as part of the HRA Budget Setting Report in February 2019.

This decision was first published on Friday 9 November and so the deadline for call-in is 5pm on Friday 16 November.

Cabinet approved the Housing Revenue Account (HRA) Medium Term Financial Strategy (MTFS) as set out in Appendix 1 to the report from the Head of Finance, to include:

·     changes in financial assumptions as detailed in Appendix B to the HRA MTFS

·     mid-year revenue budget changes, as detailed in Appendix D(1) to the HRA MTFS, which impact future forecasts for the HRA.

·     mid-year capital budgets changes, as detailed in Appendix E to the HRA MTFS, to include recognition of the virement of resource of £1,560,000 from the unallocated acquisition / new build budget for the acquisition of market dwellings, to ensure that right to buy receipts are appropriately reinvested in 2018/19

·     updates in the new build budget and the new build schemes included in the Housing Capital Investment Plan, incorporation of the latest budgetary figures in respect of approved new build schemes, inclusion of new pipeline schemes with associated budgetary provision and re-phasing of expenditure in line with anticipated build timetables

·     changes in anticipated receipt and use of capital resources for the HRA, as included in Appendix H to the HRA MTFS

·     approval of the HRA budget strategy for 2019/20, to include the exemplification of efficiency savings of £142,000, to facilitate the creation of a corresponding strategic investment fund also of £142,000 for 2019/20, with both reducing to £95,000 per annum from 2020/21 onwards for a further 4 years.

·     noting the early proposals for bids and savings in the HRA, as detailed in Appendix D (2) to the HRA MTFS in advance of formal consideration as part of the HRA Budget Setting Report in February 2019.

Cabinet considered a report providing it and, subsequently, Council, with an update in respect of the financial position and forecasts for the Housing Revenue Account, allowing review of financial assumptions, approval of any mid-year budgetary changes, approval of any future year business plan changes and agreement of the budgets strategies for 2019/20 and beyond.

Councillor Brian Milnes (Vice-Chairman, Scrutiny and Overview Committee) highlighted the potential impart on the long-term strategy, and of Universal Credit.

Cabinet recommended that Council approve the Housing Revenue Account (HRA) Medium Term Financial Strategy (MTFS) as set out in Appendix 1 to the report from the Head of Finance, to include:

·        noting changes in financial assumptions as detailed in Appendix B to the HRA MTFS.

·       mid-year revenue budget changes, as detailed in Appendix D(1) to the HRA MTFS, which impact future forecasts for the HRA.

·       mid-year capital budgets changes, as detailed in Appendix E to the HRA MTFS, to include recognition of the virement of resource of £1,560,000 from the unallocated acquisition / new build budget for the acquisition of market dwellings, to ensure that right to buy receipts are appropriately reinvested in 2018/19.

·       updates in the new build budget and the new build schemes included in the Housing Capital Investment Plan, incorporation of the latest budgetary figures in respect of approved new build schemes, inclusion of new pipeline schemes with associated budgetary provision and re-phasing of expenditure in line with anticipated build timetables.

·       changes in anticipated receipt and use of capital resources for the HRA, as included in Appendix H to the HRA MTFS.

·       noting the HRA budget strategy for 2019/20, to include the exemplification of efficiency savings of £142,000, to facilitate the creation of a corresponding strategic investment fund also of £142,000 for 2019/20, with both reducing to £95,000 per annum from 2020/21 onwards for a further 4 years.

·        noting the early proposals for bids and savings in the HRA, as detailed in Appendix D (2) to the HRA MTFS in advance of formal consideration as part of the HRA Budget Setting Report in February 2019.  

The Lead Cabinet Member for Housing presented the Housing Revenue Account (HRA)Medium Term Financial Strategies (MTFS). This provided an update in respect of the financial position and forecasts for the Housing Revenue Account, allowing review of financial assumptions, approval of any mid-year budgetary changes, approval of any future business plan changes and agreement of the budget strategies for 2019/20 and beyond.

The committee was informed that:

·         The threat to the Council of having to sell empty high value homes had been factored into longer term strategies. The threat of this had diminished as the government had said that this would not happen before at least April 2019 and was thought to be unlikely thereafter.

·         It was reported that the Government would be withdrawing the HRA borrowing cap imminently and more would be known after the Government’s Autumn Budget Statement. The Council needed to establish what the impact would be if the borrowing cap was removed. Depending on the outcome of this, the HRA MTFS report would be amended before it was presented to Council in February 2019. If the cap was removed the Council would think more widely and ambitiously as time restraints associated with the cap would not be a factor.

In discussing the report, the committee raised the following points:

·         A glossary of terms was requested to accompany the report as well as an explanation of the brackets in the financial information.

·         Fire safety of Council owned properties was raised. It was suggested that sprinklers in the corridors of these could improve safety. The committee was informed that any cladding on Council owned properties was compliant with fire safety regulations. The Council had made provision for investment in fire safety doors.

·         The review of communal rooms was discussed. It was highlighted that some communal rooms were in a poor state. The committee was informed that funding had been identified for architect fees as part of a project reviewing the communal rooms. The potential for communal rooms being used by external bodies, such as community groups, was suggested however many of the rooms needed to be improved before this could be considered. The Leader of the Council suggested that the communal rooms review being undertaken by the Council needed to be accelerated.

·         The committee was informed that the Housing service had gone back to a patch based system of working so that staff got to know the residents in the areas they covered, to ensure early intervention. Voids had been a priority and pressure had been put on Mears to turn void properties around quickly. The low level of voids was noted.

·         Regarding Universal Credit, the committee was informed that resources had been put in place to help tenants in bad debt and resources had been put into general housing management to help tenants. New working age claimants in South Cambridgeshire would now be on Universal Credit.

·         The committee was informed that the Council had seen an increase in the level of tenant arrears due to the introduction of  ...  view the full minutes text for item 6