Agenda item

(Report and Annexes to follow)

This report sets out the proposed Housing Revenue Account (HRA) Business Plan, Revenue Budget, and Capital Programme for 2024/25.

The Overview & Scrutiny - Resources Committee is asked to consider the report and agree any comments or recommendations to be passed to the Executive on the proposed recommendations to Executive and Council as set out in the report.

67.1     The Senior Accountant introduced the report, highlighting the additional costs in Annexe 3, showing growth items amounting to £2 million. It was also noted that the borrowing requirement for 2024/25-2029/30 of £23 million to meet the Decent Homes Standard was another key driving factor for the proposed 7.7% increase.

The increase in service charges to the Senior Living Scheme facilities was also discussed, acknowledging that costs are higher than monies recovered. An error was noted at the table in paragraph 10.1 that displays under/over recovery of costs, though the figure of £388,000 found in the commentary is correct.

67.2     It was clarified that 4.6% is the assumed inflation rate for rent increases as with the General Fund, but acknowledged the need to revisit this figure given the latest CPI figure due to be released on 17 January. The Senior Accountant confirmed that the 30% of HRA tenants that are in receipt of full or partial Universal Credit and that potential tenant hardship due to the 53-week rent year is concerning. She confirmed that the Housing Support team are working toward publicising the discretionary housing payments, Household Support Fund and HRA Hardship Fund to tenants.

The Committee noted the increase of the Hardship Fund from £30k to £200k in 2024/25, intended to help support tenants in receipt of Universal Credit and mitigate the impact of the 53-week rent year. It was agreed that the Hardship Fund should be closely monitored.

67.3     The Senior Accountant confirmed that Waverley Borough Council conducts buy-backs on properties purchased by private owners under the Right-to-Buy scheme and that the council has first refusal here. She also confirmed that some open market purchases are currently underway to help provide housing for the homeless and refugees. These use the Local Authority Housing Fund, with central government providing 40% of the necessary funding.

67.4     Several members queried the rationale behind the rent increase rising from a capped 4% in 2023/24 to a proposed 7.7% for 2024/25, as well as the £2.1m in growth bids. It was noted that the decision to increase rent was influenced by this year’s growth bids and the need to balance financial demands caused by the debt profile and additional borrowing, while last year’s decision to cap the increase at 4% was primarily influenced by the cost-of-living crisis.

67.5     The Committee sought more clarity around the £2.1m in growth bids, particularly the proposal for 15 new positions under the HRA, asked how many staff presently work on the HRA and where the target collaboration savings are in this area. It was confirmed that there are around 100 staff members working on HRA and that some of the resources would be for longer-term projects. It was noted that the two Service Improvement Officers and one Complaints Officer posts were intended to address shortfalls in service delivery as evidenced in some of the key performance indicators that have come before this committee.

67.6     It was clarified that a higher spend around compliance is intended to secure continued compliance with the standards of the Regulator for Social Housing and damp and mould legislation, and that an increased number of pipeline housing delivery schemes will need to be resourced. Officers clarified that some of these schemes would be capitalised if spent on capital acquisitions, and that there are some increases in the General Fund to apportion the growth in areas such as IT.

67.7     The Chair queried the given costs of gas heating as compared to that of Air Source Heat Pump costs in the HRA Capital Programme. The Senior Accountant explained the urgent need to replace the gas boilers in a large percentage of Waverley’s social  housing stock in order to comply with health and safety legislation. It was noted that the retrofit schemes are not yet sufficiently progressed to ascertain the savings value from retrofitting with air source heat pumps, and that the pilot retrofit schemes will also address alternative heating solutions and results are yet to be determined, but will inform future decisions. Non-voting visiting member Cllr Jane Austin noted that the cost of retrofits could have been spent on installing new boilers or energy efficient heating.

67.8     Regarding debt reprofiling, members queried the high levels of repayment from 2023-2036 and why there is a steep drop in year 2038/39. Officers replied that there are high level of payments over the next 11 years and that they are proposing a slight deferral to make them more affordable.

67.9     Cllr Merryweather addressed the Committee and agreed to circulate a list of benchmarking websites and resources supplied by the LGA and central government.

The Committee RESOLVED to note the report and requested that the Executive considers the comments made by the members of the Committee.