Issue - meetings

To consider this report.

NON-KEY DECISION

Following consideration of the officer report, appendices and discussion, the Executive agreed to note the HRA’s forecast financial performance and projected reserves position for 2023/24 financial year as at 30 September 2023, including key risks and future issues and opportunities detailed in the report which will be closely monitored and updated throughout the year.   

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report

REASON FOR DECISION: As set out in the officer report

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited the Lead Member for Communities, Housing and Culture, Cllr Federica Smith-Roberts, to introduce the report. 

The Lead Member for Communities, Housing and Culture, Cllr Federica Smith-Roberts, introduced the report, highlighting: that Somerset Council has inherited two landlord operating models which now sit under one Housing Revenue Account: that the two landlord operating models are an in-house service in the West, formerly Somerset West and Taunton (SWT), and Homes in Sedgemoor which is an Arm’s Length Management Organisation (ALMO) operating in the North, formerly Sedgemoor District Council (SDC); that HRA is a ring-fenced account which must abide by the accounting regulations and ensure that cross subsidy does not occur; whilst self-financing has provided some flexibilities, the HRA is heavily regulated which restricts income growth and increase cost pressures, including the increased number of requests for support, service and maintenance on properties, the increased cost of maintenance and the number and condition of void properties; the positive life changing work of partnership working; and the newly opened properties; the opportunity to look to move forward and support Adult and Children's Services providing homes that are suitable for people's lives.

The Executive Director for Community Services, Chris Hall, advised the Executive of queries raised at the Scrutiny Committee - Corporate and Resources meeting held 5 December 2023: highlighting that the HRA isn't limited to the ex landlord function areas, and that it can be used in terms of capital build programme across the whole of Somerset as required and as is financially viable; and the financial position of the HRA, specifically the HRA reserve forecast position andassured the Executive that this is constantly under review and that an update to be provided at the Executive meeting 7 February 2024.

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited comments from other Members present, questions and points raised included: the potential of future work to improve the two models to increase funding opportunities and financial efficiency; the high value contract key decisions associated with the HRA taken and the spend within budgets; the positive outcomes, including helping residents to be able to live independent lives in the properties; and welcome future proofing of houses.

The Executive proceeded to vote on the recommendations, which were agreed unanimously.?? 

Following consideration of the officer report, appendices and discussion, the Executive agreed to note the HRA’s forecast financial performance and projected reserves position for 2023/24 financial year as at 30 September 2023, including key risks and future issues and opportunities detailed in the report which will be closely monitored and updated throughout the year.   

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report.  

REASON FOR DECISION: As set out in the officer report.