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Waverley Borough Council Committee System - Committee Document

Meeting of the Executive held on 06/02/2007
APPENDIX B.4 - DRAFT HOUSING REVENUE ACCOUNT CAPITAL PROGRAMME 2007/2008 AND SOCIAL HOUSING GRANT



Summary & Purpose
This report provides a further opportunity for the Executive to consider the draft Housing Revenue Account (HRA) Capital Programme for 2007/08. At their December meeting, Members requested that officers re-visit the draft Programme with a view to bringing forward some of the decent homes work based on the level of resources known to be available. This latest draft proposes some changes in response to that request.

APPENDIX B.4
Waverley Borough Council

EXECUTIVE - 6TH FEBRUARY 2007

Title:
DRAFT HOUSING REVENUE ACCOUNT CAPITAL PROGRAMME 2007/08 and SOCIAL HOUSING GRANT
[Wards Affected: All]

Summary and purpose:

This report provides a further opportunity for the Executive to consider the draft Housing Revenue Account (HRA) Capital Programme for 2007/08. At their December meeting, Members requested that officers re-visit the draft Programme with a view to bringing forward some of the decent homes work based on the level of resources known to be available. This latest draft proposes some changes in response to that request.

Environmental implications:

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

Social / community implications:

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

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 Executive gave initial consideration to the draft 2007/08 HRA Capital Programme at their meeting on 5th December 2006 and asked officers to investigate bringing forward some of the Decent Homes expenditure from future years. 2. It is currently estimated that the resources available for the HRA Capital Programme 2007-08 to 2010-11 are 22.5m, some 5.6m a year. This annual amount is then top-sliced to fund those areas of work that, at the meeting on 10th January 2006, the Executive agreed should be a priority, principally health and safety related work. 3. Of the 7.3m estimated to be available for decent homes work over the three-year period of this draft Capital Programme, 6.25m has now been allocated in 2007-08 and 2008-09. Officers consider that as well as being beneficial for tenants the revised spending profile will achieve better value for money by spending available resources earlier and through possible procurement savings on larger contract sums. The draft Programme is attached at Annexe 1
Resources

4. In addition to the existing resources mentioned above, the Council has taken a number of decisions in relation to trickle transfer, the use of residual right-to-buy receipts and HRA asset sales that will generate additional capital resources. The capital receipts will only be taken into account once they have been received in the drafting of future programmes of work but, even with these receipts, it must be noted that this will not enable a programme to be continued at 2007/08, 2008/09 levels. Social Housing Grant

5. It is estimated that some 3.4m will be available for spending on affordable homes over the 2007/8 to 2010/11 period. This sum has been earmarked in the past from Waverley’s accumulated capital receipts with only small additional receipts anticipated due to the change of policy on the allocation of new, available right-to-buy receipts. Funding of 841,000 could be provided in each of the next 4 years to support affordable housing schemes. Bringing forward budgets would not generally increase the earlier supply of affordable units because their construction depends on available land supply.

6. A draft programme is attached at Annexe 2.

Recommendation

It is recommended that the Executive make the following recommendations to Council, that:

1. the 2007/08 HRA draft Capital Programme be approved; and 2. the 2007/08 Social Housing Grant draft capital programme be approved.

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/exec/2006-07/286