The Committee was provided with the third quarter budget monitoring report for 2023/24 in relation to the Housing Revenue Account showing the position up to 31 December 2023. The Cabinet had also been provided with and discussed the budget monitoring report in January 2024.

The Principal Accountant (HRA & Exchequer) directed Members to page 62 which held an executive summary of the report.

The Principal Accountant (HRA & Exchequer) took Members though the report and highlighted key points; Members noted the information provided on:

·       actual performance against the approved Revenue and Capital budgets for 2022/23, including known variances agreed or identified through budgetary control activity; and

·       other key arears of financial performance that may have an affect on the Council’s Medium Term Financial Strategy, Medium Term Financial Plan (MTFP), HRA Business Plan or Financial Statements.

The Principal Accountant (HRA & Exchequer) fielded questions from the Committee and explained that:

• £3.8 million was budgeted for the replacement programme with a forecasted spend of £3.6 million; some elements of the programme would have been delayed or a saving. The Principal Accountant (HRA & Exchequer) agreed to look into the matter and circulate a response outside of the meeting
• Following a Members question, the Principal Accountant (HRA & Exchequer) agreed to circulate a response outside of the meeting advising if net zero requirements and biodiversity requirements had been assessed and budgeted into the new housing developments
• Regarding 3.5.3, where it said responsive it meant that if something was damaged in the Councils housing then the Council were obliged to repair it; material costs was a part of those repairs. A number of additional responsibilities had been placed on the Council, as a landlord, over the years and many things needed to be replaced when they were damaged increasing overall repair costs
• The Local Authority Housing Fund gave the Council £810K to provide accommodation for Ukraine and Afghan resettlement properties of which a certain number had to be bought by the Council
• A report was taken to Housing Services Cabinet Committee and Council in November 2023 requesting additions to the budget for Crescent House and Cable Wharf; Crescent House was easier to accomplish than Cable Wharf as there was an issue that if Cable Wharf was advertised by the developer the land couldn’t be purchased for new builds. The Principal Accountant (HRA & Exchequer) was uncertain if Cable Wharf would be delivered in 2024/25
• Legal companies offering ‘no win, no fee’ cases targeted tenants and charged exorbitant fees; when a case was won against the Council, the legal fees amounted to 72% with 28% going to the tenant. To prevent those cases from happening in the future, the Repairs Team had worked well to promote services to report any issues in the Councils housing properties and tenants were encouraged to report issues as soon as they were noticed
• Historic debt stemming from Government requirements for the Council to buy housing was £106 million, an estimated £80 million was still outstanding which was to be repaid over seventeen years. Debt repayments were made for a large number of years, but the policy changed and the Council did not have the sources to pay off the required level of debt. Some elements of the debt needed to be refinanced but that was at a fixed rate of interest which meant that the debt wasn’t subject to the rising interest rates. The £217K favourable variance at 3.7.1 outlined interest costs and the debt taken on for new build programmes

Members noted the information provided in the report.