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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 10/01/2006
DRAFT HOUSING REVENUE ACCOUNT CAPITAL PROGRAMME 2006/07



Summary & Purpose
This report outlines a potential capital programme for the Housing Revenue Account (HRA). Following the recent stock transfer ballot the resources available to carry out decent homes and other work have been scrutinised and their use prioritised as resources are insufficient to meet all demands. The Executive is invited to comment on the proposals and indicate what priorities Members would wish to build into the Programme.

APPENDIX B.4
Waverley Borough Council

Executive - 10TH JANUARY 2006



Title:
DRAFT HOUSING REVENUE ACCOUNT CAPITAL PROGRAMME 2006/07

[Wards Affected: ALL]


Summary and purpose:

This report outlines a potential capital programme for the Housing Revenue Account (HRA). Following the recent stock transfer ballot the resources available to carry out decent homes and other work have been scrutinised and their use prioritised as resources are insufficient to meet all demands. The Executive is invited to comment on the proposals and indicate what priorities Members would wish to build into the Programme.



Environmental implications:

There are no direct environmental implications from the recommendations in this report.

Social / community implications:

The shortfall of resources indicated in this report has implications for the quality of life of the Council’s tenants due to the Council’s inability to spend to the required extent on individual properties, estate and environmental improvements.

E-Government implications:

There are no e-government implications arising from this report.

Resource and legal implications:

The report outlines the limited level of resources available for spending on capital work within the HRA and the potential consequences of this shortfall both in terms of the decent homes standard and tenants’ aspirations.



Introduction

1. The decision of tenants to retain Waverley as their landlord has significant implications for the Council’s ability to deliver decent homes and carry out other repairs to its housing stock. Capital resources are insufficient to meet the Government’s decent homes standard and carry out other much-needed works to the housing stock that fall outside of the standard.
2. Resources

3. The Council had 11.7m of capital receipts available for housing schemes at 31st March 2005. 8.4m of this related to HRA spending with the balance being allocated for affordable homes. This 8.4m together with receipts accrued in the current year from land sale receipts at the Kilnfields development and Right-to-Buy receipts will be used to help finance spending to the Government’s 2010/11 decent homes deadline. With other projected resources the position is; 4. These estimated resources fall well short of what is needed. The proposals in the draft Programme spread the estimated resources over the 5-year period remaining to the Government’s deadline for achieving decent homes. This approach enables a planned approach to delivering works, gives contractors some certainty and avoids peaks and troughs in expenditure and work programme. After allowing for salaries and overheads the resources are ‘top-sliced’ to meet the Council’s statutory health and safety obligations (some of which also help to achieve decency) and continue to provide a budget for disabled facilities in council-owned homes. The balance of the estimated resources is then mostly allocated to decent homes work. Small budgets are retained for carrying out works to homeless hostels and for feasibility studies.

Conclusion

5. The Council now faces serious challenges in attempting to meet the Government’s decent homes standard and carrying out all the other necessary work on the housing stock. As identified in the formal consultation with tenants on stock transfer (see pages 21-24 of the Offer Document), Waverley will be unable to carry out the following works:- 6. It is proposed that there will be a very limited programme of bathroom replacement (spending 150,000 a year against 1.3m required) and a small provision for window replacement (50,000) only where there are implications for health and safety.

7. To summarise, the suggested officer priorities are:-

Health and Safety Works Disabled Adaptations Homeless Hostels Other decent homes work 8. Members will need to consider possible ways of generating additional capital resources that will help fund the HRA capital programme and achieve decent homes. This might include:-

the sale of parcels of land on housing estates the trickle transfer of void properties that the Council cannot afford to repair
9. Officers will be holding talks with representatives from the Government Office early in the New Year at which the implications of the ballot result will be discussed alongside the options for the future and achieving the decent homes standard.

Recommendation

It is recommended that the Executive give consideration to:-

1. the suggested list of priorities; and

2. the draft HRA capital programme having regard to those priorities




Background Papers (DoF)

There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.



CONTACT OFFICER:

Name: Glennis Pope Telephone: 01483 523252

E-mail: gpope@waverley.gov.uk



comms/executive/2005-06/244
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