Agenda item

To submit a report by the Head of Housing Services.

The report of the Head of Housing Services incorporating the Housing Revenue Account Business Plan 2023-53 was presented for the Executive’s consideration and approval.

Councillor Gary Pritchard, Portfolio Member for Children, Youth and Housing Services presented the report and HRA Business Plan as a statutory document saying that the Business Plan reflects the Council’s vision of ensuring that everyone has the right to call somewhere home. The HRA finances all of the Council’s operations in its role as registered social landlord and is ring-fenced for that purpose; it provides a financially viable plan for the Council’s housing stock. An important element of the HRA is the commitment to expanding the Council’s housing stock to meet differing housing needs across the Island. As the Portfolio Holder Councillor Gary Pritchard said that he was proud that Anglesey in among the few authorities to have retained their housing stock and is actively enlarging its stock by building new housing and converting empty properties into homes.

The Head of Housing Services advised that the HRA Business Plan had been prepared in conjunction with the Finance Service and will be submitted to Welsh Government by the end of the month in order to secure the Council’s annual Major Repairs Allowance of £2.688m for 2023/24. The Business Plan demonstrates how the Council brings its stock to Welsh Housing Quality Standards (WHQS); how it intends to work towards the new WHQS, and the investment needed to finance its new council house development programme. By the end of the period covered by the Business Plan, the Council’s housing stock will have increased by 25% to over 5,000 properties which will help meet the increasing local housing need with over 900 people currently on the social housing waiting list including 85 households in temporary accommodation on the Island.

The Council is fully committed to fulfilling the new WHQS shortly to be agreed by Welsh Government and to that end carried out a stock condition survey of all its housing stock during 2022/23 to establish a baseline in preparation for meeting the new standards. A capital programme of £9.7m for 2023/24 has been included in the Business Plan for improvement works; a provision of £6.963m has been included within the revenue budget for responsive repairs and in addition, £8.749m has been budgeted for in 2023/24 for the development programme of new Council housing and acquisition of former council housing on the Island. The Council will also continue with its energy and decarbonisation works with £1m having been earmarked to target a further 250 Solar PV system installations on the Council’s properties. The Business Plan is accompanied by a sensitivity analysis which demonstrates its robustness and further, the plan has been stress tested to take account of the risks and to ensure it remains viable over the 30-year period.

The Director of Function (Resources)/Section 151 Officer advised that the Business Plan is based on a complex financial model and having examined the Plan to verify the figures it has become apparent that the way the plan is funded needs to be changed with regard to the timing of the capital borrowing to be undertaken which while it has implications for interest payments, does not change the Plan’s overall expenditure nor income figures. These amendments will be made prior to forwarding the Plan along with the financial model to Welsh Government.

The Chair suggested and it was agreed, that in order to expedite the matter the Plan be approved by the Executive subject to the amendments to be made as outlined, and that the Portfolio Members for Housing and Finance be given the authority to approve the finalised Plan to be forwarded to Welsh Government.

Councillor R. Llewelyn Jones, Chair of the Corporate Scrutiny Committee reported that in the course of its discussion on the HRA Business Plan at its14 March, 2023 meeting the Committee had raised several issues including the Plan’s affordability; the ways in which it enables the Council to realise the priorities of the Council Plan 2023-28; how it addresses the supply of adequate accommodation for vulnerable adults and families and the capacity necessary to deliver the Plan including among private sector developers and contractors with whom the Council collaborates to build new housing. Having been reassured to its satisfaction with regard to these matters, the Committee had resolved to recommend the Business Plan to the Executive.

Members of the Executive welcomed the HRA Business Plan highlighting that the Council has long taken a proactive approach to developing and expanding its council house stock to respond to local housing needs and was the second council in Wales to meet the original Welsh Housing Quality Standards. Reference was also made to the collaboration with Social Services on the development of Extra Care housing for older persons on the Island with the third such facility now in the planning.

The Chair further highlighted the Housing Service’s tackling poverty activities as well as the support and advice services provided to tenants with the cost-of-living crisis and welfare issues especially important at this time.

It was resolved –

·      To approve the Housing Revenue Account Business Plan 2023-2053 subject to minor amendments to the financial details and

·      To authorise the Portfolio Member for Housing and the Portfolio Member for Finance to approve the finalised HRA Business Plan for submission to Welsh Government.