Resolved:

1.         That the 2007/8 provisional outturn for the Housing Revenue Account be noted; and

2.                  That in the context of the identified increase in the level of Housing Revenue Account reserves, by in excess of £4 million, the Interim Corporate Director Development and Renewal after consultation with the Lead Member Housing and Development submit a further report to Cabinet, at the earliest opportunity, bringing forward costed proposals that accord with the priorities of the Cabinet to deliver early improvements in frontline housing services.

Action by:

INTERIM CORPORATE DIRECTOR – DEVELOPMENT AND RENEWAL (P. EVANS)

Service Head Resources, Development & Renewal (C. Holme)

Finance Manager, Development & Renewal (P. Leeson)

Mr Holme, Service Head Resources - Development and Renewal, at the request of the Chair, in introducing the report; summarised salient points contained therein, and addressed the matters raised by the Overview and Scrutiny Committee, held on 1^st July 2008, in relation to the report; as set out in the tabled sheet of questions and comments presented by the Chair of the Overview and Scrutiny Committee earlier in the proceedings.

Councillor Francis, Lead Member Housing and Development:

·                    Commented that the outturn in the 2007/08 Housing Revenue Account (HRA), an under spend in excess of £4 million, was a reflection of the achievement of value for money and containing expenditure within the allocated budget by the Authority’s Housing department, but also indicated a need to work harder to identify and mitigate, at an earlier juncture, any such future under spend.

·                    Informed members of the Cabinet that there were two options with regard to the identified under spend in the 2007/08 HRA. Firstly to add these resources to the HRA balances making further provision for unforeseen risks in future years; to “bank now and invest later”. Secondly to recognise that the resources had been derived from tenant rents and leaseholder service charges and that these be invested for their benefit at the earliest opportunity “invest now”. 

·                    Considered the latter option to be preferable, and accordingly proposed the following additional recommendation, to that contained in paragraph 2.1 of the report, for the consideration of members of the Cabinet:-

“That in the context of the identified increase in the level of Housing Revenue Account reserves, by in excess of £4 million, the Interim Corporate Director Development and Renewal after consultation with the Lead Member Housing and Development submit a further report to Cabinet, at the earliest opportunity, bringing forward costed proposals that accord with the priorities of the Cabinet to deliver early improvements in frontline housing services.”

·                    Outlined the priorities of the Cabinet for early improvement in frontline housing services as follows:-

o              Developing the Estate Improvement Programme to deliver transformational change to local environments including painting, cleaning and landscaping.

o              A programme to achieve improved block and estate security.

o              Relieving overcrowding through small scale adaptions to flats and ancillary spaces, such as knock-throughs. Also through further incentivisation of tenants to take up smaller units or home ownership (enhanced resourcing of the Cash Incentive Grant) thereby freeing up more family accommodation.

o              Adaption of homes to better meet the needs of disabled residents.

o              Additional work be undertaken to achieve value for money in relation to leaseholder service charges and an additional rebate be brought forward in relation to the level of service provided to leaseholders in 2007/08

·                    Concluded by informing members of the Cabinet that he was pleased to report that the Department of Communities and Local Government had now given consent for the Arms Length Management Organisation (ALMO), also known as Tower Hamlets Homes, to go live on 7^th July 2008; adding that much work had been undertaken by members of the Shadow Tower Hamlet Homes Board and staff in Housing Services to improve the quality of the housing service and Government consent to progress the ALMO should be taken as an indication of their confidence that its objectives would be achieved.

Members of the Cabinet welcomed the proposal made by Councillor Francis.

Councillor Rofique U. Ahmed, Lead Member Culture and Leisure, in referring to paragraph 5.2 of the report containing a reference to the appointment of a Strategic Partner on the Ocean Estate in the near future, reported, on behalf of constituents who had expressed concerns to him, regarding the capacity of the Interim Board of the Ocean Regeneration Trust to deliver the programme of works proposed for the Estate.

Ms McEleney, Director of Housing Management, at the request of the Chair, responded to requests for clarification/ assurance, in relation to the following:-

·                    The contribution to the under spend in the 2007/08 Housing Revenue Account arising from renegotiated contracts for energy supply, and the linkage of reduced energy costs/ energy related savings to a reduction in income accruing to the Authority from leaseholders.  Ms McEleney undertook to provide further written clarification to Councillor Peck, Lead Member Resources and Performance.

·                    With reference to Appendix 1 “HRA Outturn Report 2007/08” and the increased expenditure detailed therein relating to provision for bad or doubtful debt. the age of the debt.

The Chair in Moving the recommendations contained in the report (taking account of the amendment proposed by Councillor Francis) requested that Mr Evans, Interim Corporate Director Development and Renewal, and the officer team in Development and Renewal, liaise with himself, Councillor Ohid Ahmed, Lead Member Regeneration Localisation and Community Partnerships, Councillor Rofique U. Ahmed, Lead Member Culture and Leisure, appropriate Ward Councillors to address the concerns raised by local people in relation to the Interim Board of the Ocean Regeneration Trust.

and it was:-

Resolved:

1.         That the 2007/8 provisional outturn for the Housing Revenue Account be noted; and

2.                  That in the context of the identified increase in the level of Housing Revenue Account reserves, by in excess of £4 million, the Interim Corporate Director Development and Renewal after consultation with the Lead Member Housing and Development submit a further report to Cabinet, at the earliest opportunity, bringing forward costed proposals that accord with the priorities of the Cabinet to deliver early improvements in frontline housing services.