Agenda item

(Director of Communities) To consider the attached report (CHB-003-2015/16).

The Assistant Director (Housing Property & Development) presented a report to the Cabinet Committee on the financial position with regard to the Housebuilding Programme. He advised that one of the Cabinet Committee’s Terms of Reference was to monitor expenditure on the Housing Capital Programme Budget for the Council Housebuilding Programme, ensuring the use (within the required deadlines) of the capital receipts made available through the Council’s Agreement with the Department of Communities and Local Government (DCLG), allowing the use of additional “Replacement Right to Buy (RTB) Receipts” received as a result of the Government’s increase in the maximum RTB Discount to be spent on housebuilding.

The Assistant Director advised that the Schedule set out at Agenda Item 7, Appendix 1 was the current position as at 18 May 2015 with regard to the Right to Buy Receipts.

He advised that, at its meeting in March 2015, the Cabinet Committee received a suite of detailed financial reports covering all financial issues relating to the Housebuilding Programme, including the Conversion Scheme at Marden Close. Since progress was on a phase-by-phase basis and was monitored separately within the Agenda, it had been possible to consolidate the detailed financial reports into 3 appendices as set out below.

Appendix 1 captured the total amount of Replacement Right To Buy Receipts received and available for use for “One-for-One Replacement” on the Council’s Housebuilding Programme, as captured on the Pooling Return to the DCLG. and when it was required to be spent. It also captured the actual expenditure to date and compared that to the projected future planned expenditure profile.

Appendix 2 set out the amount and use of financial contributions available to the Council’s Housebuilding Programme from Section 106 Agreements, in lieu of the provision of on-site affordable housing on private development sites, and other sources of funding (e.g. sales of HRA land and non-RTB property, and external funding).

Appendix 3 set out the expenditure profile. This had been profiled to reflect the detailed programme that had been included elsewhere in the Agenda, which discussed the need to accelerate the house-building programme.

This information had been captured and presented for monitoring purposes. However, it was noted that, elsewhere on the Agenda, it had been reported that there was a need to accelerate the house-building programme to keep up with the rate at which the 1-4-1 receipts were accumulating, and what the Council’s options were to meet this.

Decision:

(1)        That the current financial position be noted, in respect of:

(a)        The amount of additional “Replacement Right to Buy (RTB) Receipts” for utilisation under the Government’s “one-for-one replacement” scheme that has been received; when it is required to be spent; the actual expenditure to date; and the future planned expenditure profile (Appendix 1);

(b)        The amount and use of financial contributions available to the Council’s Housebuilding Programme from Section 106 Agreements, in lieu of the provision of on-site affordable housing on private development sites, and other sources of funding (e.g. sales of HRA land and non-RTB property, and external funding) (Appendix 2);

Reasons for Decision:

The Council’s Housebuilding Programme was a high profile, high cost activity.  It was therefore essential to ensure that budgets, costs and expenditure are properly monitored, to enable corrective action to be taken at the earliest opportunity when necessary.

Other Options Considered and Rejected:

Not to have regular Financial Reports presented to the Cabinet Committee.