To consider a call in on the  Housing Revenue Account (HRA) 2022 - 25 Capital Programme: Latest position decision made by Cabinet on 30 November 2022.

CALL-IN MEMBERS’ PRESENTATION 

Councillor Sirajul Islam members presented the reasons for call-in on behalf of the Call-in members and proposed alternative course of action as set out in the report. Councillor Islam added that: 

·         Call in councillors acknowledge the Ashington House scheme's slow progression, but are not persuaded that it should be dropped from the capital program.

·         Council homes are desperately needed to address the shortage and combat overcrowding. Removal of the Ashington House scheme will remove vital new homes from the development pipeline.

·         Call in councillors understand the value of investing in improving Watney Market car park, but believe the funding should not come from the HRA Capital program. This account should be restricted for improving homes and repairs.

Following questions from Committee members, the Councillor Islam provided opinion on:  

·         His opinion of the need for substantial investmentin Ashington House.

·         Details of actions and plans from when he was the lead member for housing. There had been strong political commitment to redevelopment. He advised that at no point was he minded not to have the development move forward. Consultation with residents was well attended, positive and the TRA was supportive. Refurbishment of Ashington House was considered but redevelopment was concluded to be the better option.

LEAD MEMBER’S PRESENTATION 

The Lead Member, Councillor Kabir Ahmed, set out the context of the Cabinet Decision and reviewed the key elements of the decision, reflecting that: 

·         The call in submission contained an  inaccuracy, as it referred to build of 79 new homes at Ashington, but scheme can deliver only 64 new homes.

·         Redevelopment of Ashington House was at design stage, a long way off in terms of planning.

·         Potential for refurbishment as well as building a new programfor Ashington is being explored.

·         Removal releases funds to deliver alternative programs which are further developed and will deliver 88 new council homes – a better deal for the money spent.

·         Fire safety issues at Watney Market car park had been known to the council for several years and work needed to be done urgently.

·         Leaseholders would not have to pay for the works as a section 20 notice has not been issued and a contractor had already been appointed.

·         Once design feasibilities had been discussed with the Mayor, consultation with stakeholders, board members, and local residents will take place regarding Albert Jacob House.

Following questions from Committee members, Councillor Ahmed provided more details on: 

·         How the proposals would address the borough’s housing shortage.

·         His opinion of the how long will it take for Ashington House to be in a position where redevelopment could be pursued.  He explained this was difficult due to the current economic situation, including rising inflation rates and prices.

·         How soon essential safety works at Watney Market would be completed. He explained  ...  view the full minutes text for item 3

The Pre-Decision Scrutiny Question and officer response were noted.

DECISION

1.    To approve the budget allocations for new schemes being added to the programme as substitutes for previously approved schemes which are being removed, subject to sign off through the capital governance process and agreement to proceed given by the Corporate Director, Place in consultation with the Mayor and the Corporate Director, Resources.

2.    To approve the addition of Buckhurst Street, Smithy Street, Candy Street, housing on the St Georges Leisure Centre site, the purchase of 9 completed homes at Royal Mint Street, the conversion of Albert Jacob House to be funded by the removal of the Ashington House scheme and unallocated grant and s106, subject to sign off through the capital governance process and agreement to proceed given by the Corporate Director of Place in consultation with the Mayor and Corporate Director, Resources.

3.    To approve the removal of the housing companies from the capital programme.

4.    To approve the virement of £2.098m from the THH capital works budget of £90.200m for essential works at Watney Market car park

5.    To approve delegated authority to the Corporate Director, Place, in consultation with the Mayor and the Corporate Director, Resources, to substitute schemes within the Approved HRA Capital Programme.

6.    To note that schemes funded by future capital receipts (RTB receipts) and/or s106 contributions will not go ahead until such funds have been received by the Council.

7.    To approve delegated authority to the Corporate Director of Place in consultation with the Mayor and the Corporate Director of Resources for all activities required to deliver the approved capital programme, for example but not exclusively, go out to tender, appoint consultants and contractors in accordance with the Procurement Procedures, acquire land interests, appropriate land from the General Fund to the Housing Revenue Account (HRA) for the delivery of new council homes and other rights of appropriation, subject to approved budget.

8.    To note the Equalities Impact Assessment and specific equalities considerations as set out in Section 4 of the report.

Action by:

CORPORATE DIRECTOR, PLACE (A. SUTCLIFFE)

INTERIM CORPORATE DIRECTOR, RESOURCES (K. BARTLE)

(Interim Capital Programme Manager (Housing) (J. Abraham)

Councillor Kabir Ahmed, Cabinet Member for Regeneration, Inclusive Development and Housebuilding, introduced the report on the Housing Revenue Account  Capital Programme. It set out the latest position including a number of proposed amendments and updates. An increase in the number of good-sized family homes was a key priority for the programme in future.

The Mayor welcomed the report and highlighted that tackling the severe overcrowding in the borough was a key priority for his administration. He thanked officers and the Lead Member for their work in updating the programme to reflect his priorities. He noted the Pre-Decision Scrutiny Question and officer response and agreed the recommendations as set out in the report.

RESOLVED

1.    To approve the budget allocations for new schemes being added to the programme as substitutes for previously approved schemes which are being removed, subject to sign off through the capital governance process and agreement to proceed given by the Corporate Director, Place in consultation with the Mayor and the Corporate Director, Resources.

2.    To approve the addition of Buckhurst Street, Smithy Street, Candy Street, housing on the St Georges Leisure Centre site, the purchase of 9 completed homes at Royal Mint Street, the conversion of Albert Jacob House to be funded by the removal of the Ashington House scheme and unallocated grant and s106, subject to sign off through the capital governance process and agreement to proceed given by the Corporate Director of Place in consultation with the Mayor and Corporate Director, Resources.

3.    To approve the removal of the housing companies from the capital programme.

4.    To approve the virement of £2.098m from the THH capital works budget of £90.200m for essential works at Watney Market car park

5.    To approve delegated authority to the Corporate Director, Place, in consultation with the Mayor and the Corporate Director, Resources, to substitute schemes within the Approved HRA Capital Programme.

6.    To note that schemes funded by future capital receipts (RTB receipts) and/or s106 contributions will not go ahead until such funds have been received by the Council.

7.    To approve delegated authority to the Corporate Director of Place in consultation with the Mayor and the Corporate Director of Resources for all activities required to deliver the approved capital programme, for example but not exclusively, go out to tender, appoint consultants and contractors in accordance with the Procurement Procedures, acquire land interests, appropriate land from the General Fund to the Housing Revenue Account (HRA) for the delivery of new council homes and other rights of appropriation, subject to approved budget.

8.    To note the Equalities Impact Assessment and specific equalities considerations as set out in Section 4 of the report.