The Strategic Lead for Corporate Finance presented the report on the Structure of the Housing Revenue Account (HRA).

The Strategic Lead for Corporate Finance explained that the report was to provide information on the structure of the HRA and how it operates. The Strategic Lead for Corporate Finance confirmed the HRA records the income and expenditure related to the Council’s own housing stock and closely related services of facilities. It is different from the general fund and is a ring-fenced account, any income that comes into the HRA has to be of direct benefit to the tenant.

The Strategic Lead for Corporate Finance stated that the HRA is required to produce a 30 year business model and this is reviewed annually.

The Strategic Lead for Corporate Finance confirmed that currently there is 59 million pounds worth of income and 59 million pounds worth of expenditure. The HRA has to operate on the money it generates through rent, service charges and other sources of income and it cannot have a deficit budget.

The Strategic Lead for Corporate Finance highlighted that there is currently a consultation from Central Government taking place about a potential cap to the rent increase which can be applied, and they are gathering Local Authorities views on this.

The Strategic Lead for Corporate Finance explained that right to buy receipts are the amount of money that the Council retains when selling council houses through right to buy, which can then be used to reinvest in new stock either on the open market or as part of new build stock. Over the next 5 years 27 million pounds of right to buy receipts are expected to be received. Sales under the right to buy scheme have remained stable even throughout the pandemic of around 45-50 sales a year.

Councillor Redsell queried if the doors at the back of the garages can be painted as some of them haven’t been painted for 30 years.

The Assistant Director of Housing explained that they have a garage investment plan, and they will get round to as many of them as possible and referred to the garage briefing note previously circulated which provides more information on this.

Councillor Liddiard commented that it would be good to see some data on how Thurrock compares with other Local Authorities.

The Strategic Lead for Corporate Finance confirmed that they do complete benchmarking exercises on the finance side when setting the budget. The Assistant Director of Housing added that there is a new set of regulations coming into force from the regulator for Social Landlords where they will be required to submit their returns on performance and tenant satisfaction measures. Some of this will start in April 2023 but currently they are not obligated to provide this data.

Councillor Liddiard also raised that the fascia boards in Lansbury Gardens, Tilbury need repairing.

Councillor Carter echoed Councillor Liddiard’ s comments and confirmed he would also like to see data from Thurrock’s statistical neighbours. He also asked about the Tower block refurbishment and carbon reduction requirements and noted the work being completed on the Chadwell tower blocks, he questioned if there were plans to complete work on any of the other high rises.

Alistair Wood confirmed they are looking to deliver a similar project in Tilbury but they are not able to confirm any details around a potential timeline for that yet.

Councillor Redsell asked for an update on the tower blocks in Blackshots.

The Strategic Lead for Housing Development confirmed they are reviewing the cost planning and looking through the proposals for redevelopment and replacement. Once the work is complete an update will be given to the Committee at that point.

Councillor Ononaji queried how transparent the HRA process is and how it is monitored.

The Strategic Lead for Corporate Finance confirmed that all of the income to the HRA in terms of accountancy is kept separate from the general fund and is reconciled down to a single tenants rent account and is all subject to an external audit.

Councillor Ononaji also queried why the income and expenditure on the HRA account is the same and asked why they are not saving any surplus?

The Strategic Lead for Corporate Finance clarified that the HRA is not set up to provide a surplus and the idea is that the rent collected should not be more than they are going to spend. If they were setting a budget to obtain a surplus of money that would be at a cost directly to tenants. The HRA needs to generate enough income to cover its expenditure. The Strategic Lead for Corporate Finance confirmed this is in line with what other Local Authorities do as there is rent setting process guidance of CPI + 1 %.

Councillor Liddiard commented that he would like to see a breakdown of how much money is spent on houses in each ward.

The Assistant Director of Housing responded that this is a challenge as budgets are structured per type of work or program as opposed to by location but it can be done.

Councillor Redsell expressed concern that the provision for bad debt was just 1 %.

The Strategic Lead for Corporate Finance confirmed that even through the pandemic rent collection has remained steady at 99% so to date there hasn’t been a need to take money out of front-line services for this. It is reviewed every year and as there may be some challenges to come this year this may need to be taken account.

Councillor Redsell asked whether CCTV footage could be obtained from the Chadwell St Mary flats concierge as she understood residents have experienced difficulties with this.

The Assistant Director for Housing confirmed there is a process that needs to be followed when requesting CCTV footage and due to data protection laws there is a strict criteria. The Assistant Director for Housing confirmed that she could obtain further information on how to request the footage and circulate it.

RESOLVED:

1.1      That the Housing Overview and Scrutiny Committee note and comment on the report.