Issue - meetings

The Portfolio Holder for Corporate Finance and Resources to submit a report providing Members with information on the provisional year end for the Housing Revenue Account (HRA) position, subject to external audit approval for 2020/21 and provide information on the implications of the Council’s balances and reserves.

Cabinet NOTED the provisional year end position, variations to the 2020-21 approved year end position and the resultant effect on the Council’s balances and reserves for the HRA for both revenue and capital.

Dawn Garton, Director for Corporate Services introduced the report, the purpose of which was to provide Members with information on the provisional year end for the Housing Revenue Account (HRA) position, subject to external audit approval for 2020/21 and provide information on the implications of the Council’s balances and reserves.

Mrs. Garton advised that the provisional outturn was compared with the original budget, which had been set at the Council meeting in February 2020.  The latest approved estimate, which incorporated in-year approvals was detailed at Appendix A and included budget holder comments on ‘significant’ variations (those plus or minus £10k).  The overall position was an underspend against the budget of just over £1m, mainly due to the large underspend on repairs and maintenance, as the pandemic had limited work.  This had resulted in a £1.3m increase to the reserves, over the underspend to bring the working balance back to its approved level of £750k.  The HRA business plan currently being developed would provide more detail on the suitability of these levels compared to the commitments needed to improve and manage the stock.

Mrs. Garton advised that the provisional outturn on the Capital Programme showed a similar position, with a large proportion of spend carried forward into 2021/22, again as a result of the impact of the pandemic on repairs work and access to properties.  This was all subject to audit, which the Council had yet to receive a timescale for.

Councillor Ronnie de Burle, Portfolio Holder for Corporate Governance, Finance and Resources advised that the position for the Council’s finances remained uncertain until the proper, comprehensive assessment and costed business and action plan was produced and put into place.  Climate change was also likely to have an impact.  Clarity was needed to move forward and it was particularly pleasing to receive confirmation that contracts had been signed off and work would begin very soon on producing the analysis needed to determine the condition of the Council’s housing stock.

Councillor de Burle highlighted the £2.4m underspend on maintenance projects, as detailed at paragraph 5.6.1 of the report.  Whilst there were mitigating circumstances, as detailed at paragraphs 5.1 to 5.3.4, much work was needed to achieve the corporate objectives set for 2020/24.

During discussion the following points were noted:

·         Updates to Members on the HRA were important and helped to ensure that informed decisions were made.

·         A concern over whether Council staff would be affected by the Covid-19 ‘pingdemic’ (notification to self-isolate) was raised and whether this would impact on the workload of staff.

·         Members commented that they had confidence in staff to achieve Council aspirations

·         It was reassuring that officers had identified risks and ways mitigate them.

·         Members were pleased to note that the new Development Manager would be in post at the end of September 2021.

·         Members recognised the challenges faced by the Council and that by working with the Government and Homes England etc. the Council would work to deliver the best possible housing stock.

Cabinet:

1)  ...  view the full minutes text for item 178