The Officer presented the report which provided the Committee with an update on the budget announcements made in July 2015 which introduced key policy changes that will have financial implications on the Council’s Housing Review Account (HRA) Business Plan. The key issues that will impact on HRA business plan were as follows:

•           1 per cent reduction in social rents for four years from 1 April 2016

•           “Pay to Stay” proposals from 2017/18

•           A requirement for local authorities to finance the cost of the expansion of the Right to Buy and associated discount to tenants in Housing Association Homes.

The Officer clarified each key issue and explained the comparable tables that illustrated the difference of the impact by location of the setting affordable levels at 80, 70 and 60 per cent.

The Officer also clarified the cumulative benefits to tenants by year tables and explained the calculations for the benefit of the Members.

The Officer explained the number of principles for addressing the estimated gap that is likely to be created should the proposals in the Housing and Planning Bill and Welfare Reform Bill 2015 be agreed.

Councillor Liddiard asked the Officer if there were sufficient flexibility to meet any future reductions in rent. The Officer confirmed that any future developments would be returned to Housing Overview & Scrutiny for discussion

Councillor Ojetola asked the Officers who made the final decision. The Officer confirmed that the report went to Cabinet in November 2015 asking to approval an application to the Secretary of State. After tonight’s Housing Overview and Scrutiny Committee if members approve the recommendations the report will be returned to Cabinet in December 2015, thereafter the Full Council will have the final decision.

A discussion amongst Officers and Members took place on what the process would be if the Secretary of State did not approve the application. The Officer confirmed that should the application for exemption for the need to apply the full one per cent in Thurrock not be granted by the Secretary of State further reductions in the current affordable home building programme may need to take place.

Councillor Worrall stated the importance of ensuring that rent that were set were affordable to residents.

The Committee agreed the following recommendations although one Member, Councillor Ojetola, abstained from voting on recommendation 3.

RESOLVED

1.         That the application to the Secretary of State for an exemption of the 1 per cent reduction, or part therefore, to allow the continuation of our current, mature and much needed affordable housing programme.

2.         That the setting affordable rents for Seabrooke Rise and Derry Avenue as at 70 per cent of market rent, to support the continuation of the current HRA affordable homes programme.

3.         That the proposed revisions to the current published timetable for the Transforming Homes programme, extending internal improvements by up to 1 year (1,000 homes) and external improvements by up to 3 years (5,000 homes), where the asset supports delayed completion.

4.         That the HRA revenue cost savings and efficiencies plan equating to £500k per annum or £2m over the four-year period from 1 April 2016 will be delivered to support the continuation of the HRA affordable homes programme.