Agenda item

A Cabinet report of the Director of Housing and Wellbeing to seek Cabinet approval for the updated Housing Revenue Account (HRA) Business Plan 2023-2053 and Capacity Review.

Councillor N Taylor arrived at the meeting at 6:09pm.

A Cabinet report of the Director of Housing and Wellbeing to seek Cabinet approval for the updated Housing Revenue Account (HRA) Business Plan 2023-2053 and Capacity Review, was submitted (item 7a on the agenda filed with these minutes).

The Lead Member for Housing and Wellbeing (and the Deputy Leader of the Council) and the Director of Housing and Wellbeing assisted with the consideration of this item. The following summarises the discussion:

      i.        The Director of Housing and Wellbeing explained some of the information contained within the graphs included in the report.

    ii.        The HRA Business Plan and Capacity Update programme would vary in expenditure over the course of the 30 year period. This was related to the Asset Management Strategy which required updates to properties at a specific time. Updates to properties were required sooner than the report suggested due to the desire to maintain the ‘Charnwood Standard’. There was an action in the Asset Management Strategy to review the position in respect of the Charnwood Standard as it may be components were being replaced before the end of their life cycle. Decent homes guidance was being updated and that may have an impact on this approach.

   iii.        The Director of Housing and Wellbeing agreed to provide information on the intended pattern of borrowing and review processes associated with this, follow the meeting. 

Post meeting note: Whilst loans could be taken out with banks etc, the primary source of lending for Councils was the PWLB – the public loans work board. This was part of the government’s Treasury. The current debt portfolio of £79m was all with the PWLB. Interest was paid twice a year, and the loans range from £1m to £5m and the repayment duration was spread over a long period so not all loan principal was repayable in one go. The decision making on debts was part of the treasury management service which was run within the Finance department at Charnwood. The decision to borrow money was dependent on the levels of existing and forecasted reserves, together with interest rate considerations. The current rates were all fixed interest amounts, although variable rates may be possible too. PWLB issue daily updates to their interest rates. The current policy was to repay the loans when they are due – the first of these was £1m in the next financial year. Providing the council could prove it could afford the loan, there was no longer a cap on the amount of debt the HRA can borrow.

   iv.        The borrowing forecast outlined in the report was relatively up to date, although it was difficult to predict future interest rates, which would affect borrowing  capacity. It was anticipated that an annual review of the HRA Business Plan and Capacity Update would be undertaken to account for inflationary changes and because there were several current budget pressures. The existing level of borrowing of the Council was usual across many other Local Authorities.

    v.        The Director of Housing and Wellbeing agreed to provide information on the reduction in bad debt value after 2022/23, following the meeting.

   vi.        The sudden decrease in the Major Repairs Reserve was due to the funds being used for a capital programme.

  vii.        It was highlighted that there were budgets within the HRA Business Plan to support work undertaken by the Council’s anti-social behaviour team and communal door entry systems. This would have a continued positive affect on crime and disorder in the Borough. Reasonable action associated with crime and disorder was decided by the Council and there was a Corporate Anti-Social Behaviour Policy which outlined this.

 viii.        There was a Sheltered Housing Review in progress which was considering updates to existing schemes. It was anticipated that the outcome of the review would reduce the voids rate of sheltered housing properties.

   ix.        It was likely that a capital sum would be made available for new Council properties. Some of the funds generated through the Right to Buy scheme could be used towards purchasing homes.

    x.        It was suggested that an executive summary would have been useful to draw attention to the key details within the report and the graphs. However it was acknowledged that the explanation provided by the Director of Housing and Wellbeing had been useful.

RESOLVED

1.    That the Cabinet be informed that the Commission supports the recommendations as set out in the report of the Director of Housing and Wellbeing.

2.    That the Director of Housing and Wellbeing provides information on the reduction in bad debt value after 2022/23, following the meeting.

Reasons

1.    The Commission, having carefully considered the report, felt the Cabinet should approve the recommendations set out.

2.    To ensure the Scrutiny Commission understands the reduction in bad debt value after 2022/23.