Waverley Borough Council Home Page Waverley Borough Council Home Page


Waverley Borough Council Committee System - Committee Document

Meeting of the Council held on 21/02/2006
REPORT OF THE EXECUTIVE – 7TH FEBRUARY 2006 -
DRAFT HOUSING REVENUE ACCOUNT CAPITAL PROGRAMME 2006/07 & SOCIAL HOUSING GRANT



APPENDIX A.3
Waverley Borough Council

COUNCIL MEETING – 21ST FEBRUARY 2006

REPORT OF THE EXECUTIVE – 7TH FEBRUARY 2006


DRAFT HOUSING REVENUE ACCOUNT CAPITAL PROGRAMME 2006/07 AND SOCIAL HOUSING GRANT

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. The capital resources that it is estimated will be available to the Council over the next 5 years were set out in the report to the Executive on 10th January. These resources total some 27m for the next 5 years with the possible addition of a small contribution from revenue. The Council has a statutory duty in respect of health and safety and such work is given priority in drafting the programme of works. Other works-such as disabled adaptations-are also a priority as many of these are statutory works that the Council cannot avoid. The estimated available resources are insufficient to bring the housing stock up to the Government’s decent homes standard after carrying out this mandatory health and safety work and continuing to provide disabled adaptations. Resources 3. The estimated resources outlined above and set out in detail in the previous report to the Executive fall well short of what is needed. The proposals in the draft Programme attached at Annexe 15 spread the estimated resources over the 5-year period remaining to the Government’s deadline for achieving decent homes. The figures vary slightly from those presented to the Executive on 10th January with more resource allocated to 2006/07 and a gradual tapering over the 5 years to the decent homes deadline. This 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

4. 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:-
5. It is proposed that there will be a very limited programme of bathroom replacement (spending 350,000 in the next 3 years against 1.3m per year required) and a small provision for window replacement (95,000 over 2 years) only where there are implications for health and safety.

6. At the Executive meeting on 10th January, Members indicated that they supported the suggested officer priorities of;

Health and Safety Works Disabled Adaptations
Homeless Hostels
Other decent homes work 7. In due course officers will bring forward reports on other options for generating additional capital resources that Members will need to consider. 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
re-visiting the Council’s strategy of allocating 50% of its net capital receipts to affordable homes. If changes are eventually made to this policy there will be adverse effect on the Council’s General Fund homelessness budget.

Observations of the Overview and Scrutiny Committee

8. The Community Overview and Scrutiny Committee considered the draft Capital Programme at its meeting on 16th January. There were no specific observations.

Social Housing Grant

9. At 1st April 2005 3.3m of Waverley’s accumulated capital receipts was earmarked for spending on affordable homes. It is estimated that 1m of this will be spent in the current year on an Equity Loan scheme for Waverley essential workers as approved by the Executive at their meeting on 12th July 2004. The balance remaining together with 50% of estimated new right-to-buy receipts could provide funding of 940,000 in each of the next 5 years to support affordable housing schemes.

10. A draft programme is attached at Annexe 16.


11. The Executive

RECOMMENDS that

10. the 2006/07 HRA draft Capital Programme be approved; and

11. the 2006/07 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/council/2005-06/074