Agenda item

In accordance with the Scrutiny Board Procedure Rules, to review the recent decision of the Executive Board, 8^th October 2008, to approve adjustments to the Council’s capital programme 2008 2012.

Enclosed are :-

• Cover report of the Head of Scrutiny and Member Development;
• Copy of Call – In request form:
• Copy of report submitted to the Executive Board, 8^th October 2008;
• Copy of the minutes of the Executive Board meeting, 8^th October 2008.  

The report of the Head of Member Development presented the background papers to the Executive Board decision on the Review of Capital Programme 2008 – 2012 made on 8 October 2008 which had been subsequently called in.  The decision taken was as follows:

Capital Programme Update 2008 – 2012

The Director of Resources submitted a report providing an updated position on the 2008 – 2012 Capital Programme.

RESOLVED –

(a)  That the adjustments to capital programme expenditure and resources as detailed in Appendix A to the report be approved.

(b)  That the Strategic Development Fund be sub-divided into 3 investment areas as set out in section 4 of the report.

The decision had been called in for review by Councillors R Lewis, M Lyons, L Mulherin, A Ogilvie and J Dunn on the following grounds:

• That clarification was sought on the amount of money being transferred from the HRA in appendix A to the general fund was affordable and would not adversely impact on the ALMOs programs and plans.
• That information was sought on what consultation had taken place with the ALMO Chief Executives and Board Members.

In response to the call-in notice, the following had been invited to the meeting:

Councillor Richard Lewis

Councillor Les Carter

Alan Gay, Director of Resources

Richard Ellis, Head of Finance, Environment and Neighbourhoods

Paul Langford, Chief Housing Services Officer

Maureen Taylor, Chief Officer Financial Development

Councillor Lewis was invited to address the Board and give further information on the call in request.  He raised the following points:

• Overall effect on the housing decency programme.
• The consultation process before the Executive Board decision and the involvement of the ALMOs in any consultation.
• A shortfall in the decency budget for the West North West Homes ALMO.
• Potential implications if proposed PFI schemes in relation to housing do not go ahead.
• There had been no reference to future funding required to maintain decency standards.

In response to the concerns behind the call-in of the Executive Board decision, the following responses were given:

• The forecast for capital receipts had fallen considerably and there was a need to address a gap in the Council’s capital programme.
• It had been concluded that there was a surplus of resources across the ALMOs.
• The investment needs of the West North West ALMO were still under review.
• Further to concern regarding future funds to maintain decency standards, it was reported that there would be ongoing discussion between the Council and the ALMOs regarding this.  This would also be affected by the continuing review of legislation from Central Government and the HRA review.
• There had been ongoing negotiations with the ALMOs since the beginning of the year.
• Other areas within the Council had seen pressure on their capital budgets.

In brief summary, the following issues were discussed in relation to the called-in decision:

• Concern regarding the lack of consultation with and representation from the ALMOs.
• Capital needs elsewhere across the Council.
• Housing inspections – it was reported that this had been completed in Aire Valley and results were awaited for East North East and West North West ALMOs.

Councillor Lewis was given opportunity to respond and informed the Board that it was still not felt that enough information had been given for the decision of the Executive Board to be implemented.  He also raised a concern that a reduction in the sale of properties would mean more properties would have to be upgraded and maintained to meet decency standards.

RESOLVED – That the report be noted.