Agenda item

To consider a report of the Head of Scrutiny and Member Development providing Members with a financial position statement of the City Development and Environment and Neighbourhoods Directorate’s in relation to this Board’s responsibilities after three months of the financial year 2012/13.

The Head of Scrutiny and Member Development submitted a report providing Members with a financial position statement of the City Development and Environment and Neighbourhoods Directorate’s in relation to this Board’s responsibilities after three months of the financial year 2012/13.

Appended to the report were copies of the following documents for the information/comment of the meeting:

• Housing Revenue Account (HRA) – Summary/2012/13 Budget – Period 2 position (Item 7a refers)
• Environment and Neighbourhoods - Regeneration Services 2012/13/Housing General Fund 2012/13 (Items 7b and 7c refer)
• Housing Revenue Account Programme/Leeds ALMO Capital Programme 2012/13 (Item 7d refers).

The following representatives were in attendance and responded to Members’ queries and comments:

-  Richard Ellis, Head of Finance, Environment and Neighbourhoods

-  Kathryn Bramall, Leeds Homes Policy Manager, Environment and Neighbourhoods

-  Rob McCartney, Head of Housing Support, Environment and Neighbourhoods.

In summary, specific reference was made to the following issues:

Housing Revenue Account (HRA)/Environment and Neighbourhoods Regeneration Services 2012/13

• Clarification of whether there had been any factoring in concerning likely rent arrears as a consequence of benefit changes which was of concern to many Elected Members

(The Head of Finance responded and informed the meeting that benefit changes concerning under occupation would not start until April 2013 and universal credit in the Autumn of that year. It was stated that there would be no impact on the current financial year 2012/13. He referred to the fact that what had been factored in to the 2011/12 outturn was the creation of a reserve of £2.2 m for costs associated with welfare reform. He accepted that it would be necessary to keep this issue under review)

• Clarification if the department were on track with these figures

(The Head of Finance stated that at period 2 the statutory housing fund variation was £74,000 above estimate as a consequence of managing workshop change and  £25,000 above estimate in regeneration as a consequence of a restructure in November 2011 resulting in residual costs as a consequence of asylum staff being displaced. He stated that based on the current figures the Housing Revenue Account would produce  a surplus at the end of the financial year. The Board welcomed this news)

• Clarification as to why Agency Staffing costs were going up

(The Head of Finance responded and informed the meeting that no agency staff were employed in relation to the Housing Revenue Account. The rise in staffing costs related to the creation of an additional post to deal with contracts in the ALMO  Business Centre Leeds (ABCL))

• Clarification of the reasons why a projected £1,550k would be paid over to the ALMOs as incentive payments in respect of voids and arrears

(The Head of Finance responded and confirmed that this was part of the performance framework and was a long standing arrangement associated with the setting up of the ALMOs)

Housing Revenue Account Programme – Capital Programme

• Clarification as to whether the regeneration resources of £2.7m was sufficient to meet the regeneration requirements contained within the Council’s Core Strategy and the reasons why a further £500,000 had been added to this fund for the outer areas and how this was to be allocated

(The Head of Finance responded and agreed to obtain more information on this issue and to let the Principal Scrutiny Adviser have the information so it can be circulated to all Members of the Board)

• Clarification as to the effect of Welfare Reform on the provision of aids and adaptations in Council houses

(It was stated that the Department for Works and Pensions was fully aware of the consequences of the welfare proposals but there was no exception for disability. It was explained that local authorities have now been given additional discretionary housing powers that will enable it to fund additional rental costs as a consequence of for example under occupation to enable a tenant to remain in their home where adaptations have been carried out. The Government had placed a duty on local authorities to protect disabled tenants in this way. Reference was also made to the development of the accessible Housing Register.

 The Chair informed the meeting that a report on this issue had been discussed at the Executive Board meeting held on 20^th June 2012 where it had been resolved that correspondence be forwarded to the relevant Government Minsters and Leeds MP’s, highlighting the Council’s concerns regarding this issue)

Leeds ALMO Capital Programme 2012/13

• Clarification of where the money came from in relation to improving a neighbours properties

(The Head of Finance responded and informed the meeting that the monies was paid from Housing Revenue Account monies)

• Clarification of the empty properties procedure

(The Head of Finance responded and outlined the Decent Homes Standard procedure)

• Clarification of how the department addressed the upgrade of boilers

(The Head of Finance responded and outlined the investment priorities contained in the Housing Revenue Account Business Plan for the coming year)

RESOLVED -

a)  That the contents of the report and appendices be noted.

b)  That this Board notes the projected financial position of the Directorates City Development and Environment and Neighbourhoods in relation to the areas listed in the appendices after three months of the financial year 2012/13.