Decision details

Members considered proposals for variations to the approved Capital Programme 2023/24 relating to the Housing Revenue Account (HRA) relating primarily to health and safety and compliance issues.

Each year the Council sets a three-year rolling Capital Programme for the General Fund and HRA. A review of progress made in quarter 1 of the 2023/24 HRA capital budgets identified a number of important health and safety and compliance works that were not currently covered within the approved budgets.  The current HRA capital budgets were insufficient to meet the expenditure required to comply with health and safety compliance and standards. It was noted that, in relation to electrical compliance, the Council was making faster progress than legislation, as the Council’s Electrical Compliance standards exceed statutory obligations as properties have electrical inspections every five years rather than the legislative requirement of 10 years.

The additional proposed compliance work included essential fire door replacements (both HRA tenants and leaseholders), work arising from fire risk assessment, electrical works, asbestos remedial works and concrete surveys.

It was proposed that an additional net capital budget of £1,205,900 be approved made to complete these essential works.  In order to partly mitigate the increase in the capital budget, it was proposed that budget allocations from two existing schemes that were underspent be used.  The net budget increase would be funded from increased prudential borrowing.

RESOLVED that the proposed variations to the Capital Programme 2023/24, as presented, be approved. The additional capital cost of £1,205,900 to be being funded by prudential borrowing and the associated costs being factored into future years HRA budgets.

Reason

The Council, as a landlord, has many legal obligations it must satisfy to ensure the health, safety and welfare of its tenants and leaseholders. It must also adhere to the regulatory standards as set out by the Regulator, particularly the Home Standard.