Agenda item

Further to Minute No. 17(4) of the meeting of the Self Regulation Select Commission held on 15th September, 2011, consideration was given to a report presented by Maureen Gatt, Finance Director, which outlined the current position on the Housing Revenue Account Balance and the management actions that have been taken to address the reduction in the Balance at the end of the financial year 2010/11.

The latest forecast outturn position for the Housing Revenue Account in 2011/12 projected a £4.876m surplus which would restore the Working Balance to £7.648m which was considered to be a prudent based on an assessment of the financial risks facing the Housing Revenue Account. Decisions on the future use of the balance would be considered in the context of the new Housing Revenue Account Self Financing regime and the Council’s Thirty Year Business Plan that was currently being drawn together.

Over the last eighteen months the Council had been significantly altered the way in which housing services were delivered in the Borough in particular:-

·              By externalising the repairs and maintenance function, thereby ending the ongoing trading deficit of the In House Service Provider and securing significant savings on previous costs.

·              By returning the management of all housing services back to the Council and restructuring those services to reduce duplication, back office functions and bureaucracy and reinvesting resources in front line activities.

During this period the Decent Homes programme had also been successfully concluded. This programme saw over £318m invested in Council housing across the borough.

Additional, one off costs associated with the management of these major change programmes and accounting code requirements (in recognising the financial closure of 2010 Rotherham Ltd) mostly contributed to the temporary, planned reduction in the 2010/11 year end balance (£2.772m). 

Further information was provided on the current year provision, increases in the subsidy payment and the management fee, self financing and the thirty year business plan.

A discussion ensued and the following issues were raised and subsequently clarified:-

-                 How many properties were still to be updated as part of the Decent Homes Programme and the proposed timescale for this to be completed.

-                 Savings on the externalisation of the repairs and maintenance service when the quality of service appeared to have reduced.

-                 Review of the financial control of the externalisation of the repairs and maintenance service.

-                 Intention to reinstate the working balance from reserves, which could increase year on year and the impact this would have on services.

-                 Use of the Housing Revenue Account surplus.

-                 Void properties and the turnaround targets and whether these would be achieved.

-                 Expected improvements to services and how worse the repairs and maintenance service had become when savings were being made.

-                 Perception of service delivery and the views being put forward by customers.

Resolved:-  (1)  That the report be received and the contents noted.

(2)  That an update report be provided on the Housing Revenue Account in six months time

(3) That further information be provided on the Housing Revenue Account in respect of issues around self financing and the thirty year business plan.

(4)  That further information be sought on the completion of the Decent Homes Programme and this be circulated to all Members of the Self Regulation Self Commission for information.

(5)  That a further report be submitted early in 2012 for consideration on the externalisation of the repairs and maintenance contract.

(6)  That the concerns relating to void turnaround targets be referred to the Improving Places Select Commission for consideration.