Agenda item

PFI Housing and Decent Homes

Report of Director of Housing (Copy herewith)

Decision:

Cabinet noted the report.

Minutes:

Councillor Hawkins stated that everyone was aware of the complexity, confusion and disappointment to the people of Eastfield and Thorplands caused by the PFI project. She noted that the Call-in of the Cabinet decision on 10 November had not proceeded but stated that the issue could not be ignored. £729,000 had been spent on it and she hoped that other Councillors would scrutinise this expenditure. PFI had focussed on regeneration, changing environments and this had been confused with Decent Homes. Eastfield and Thorplands appeared now to be off the Decent Homes radar and she asked Cabinet to consider how the two wards could be included in Phase II of Decent Homes. In answer to a question from Councillor B. Markham, Councillor Hawkins commented that as the outline options appraisal had not been made available to her she could not comment on what work could be done under Decent Homes as opposed to the proposal to demolish the flats and maisonettes.

 

Councillor Mildren noted that the Government had abandoned PFI and that the Council had spent £729,00 on it out of a budget of £1.1m. He assumed that the balance would be returned to the HRA. He noted the statement in the report that some of the expenditure would have been necessary whatever funding mechanism had been in place. He also referred to the statement made at Council that demolition/ CPOs were unlikely to proceed. Councillor Mildren wondered if some good might come out of it all as the funding gap to meet the management charges of PFI would no longer have to be met. He hoped that Eastfield and Thorplands could be worked into Phase II of Decent Homes.

 

Councillor Clarke stated that the Administration owed the public an apology for the statement that only a fraction of the £1.1m budget had been spent; £729,000 was a significant proportion. He had cautioned about PFI from when it had first been suggested and believed that the Council’s housing strategy was in tatters. The proposal now seemed to be to go to the HCA for funding to deal with the highest number of properties rather than those with the greatest need: those in the worst condition would be further delayed. He felt that those properties in the worst condition should be dealt with first. The Administration were proposing to spend more money on consultants where they were not needed.

 

Councillor Mason commented that she had been disappointed by the outcome of the PFI project but was appalled by the amount of money spent so far. She was pleased by the proposals in the report but there were many other homes that needed attention but were not covered by the report. She noted that houses on the Eastern District had been built at the same time as each other and were all aging at the same rate. She believed that the mismanagement of the process had upset so many people and that the Council had to learn the lessons from this.

 

Councillor Beardsworth, as the relevant Portfolio Holder, submitted a report that confirmed the withdrawal of the PFI opportunity and outlined current funding proposals for Decent Homes following the Comprehensive Spending Review. The appended letter from the HCA included the invitation for the Council to bid for decent homes backlog funding: this would be a competitive bidding  process with no guarantee as to the outcome. It was thought that this would form part of the review of the HRA. Funding for Bellinge, Blackthorn, Eastfield and Thorplands would be bid for. The £100m proposed under PFI would not proceed as Decent Homes did not include the transformational change elements of the former project. She noted that money had to be spent as part of the PFI bidding process. Councillor Beardsworth observed that Labour had been aware of the condition of some properties in Spring Boroughs but had chosen not to make provision to deal with them.

 

Councillor Church remarked that Councillors had never previously questioned expenditure to make the PFI bid. Bidding for funding for major projects always involved up front expenditure and there was always a risk that a bid would not be successful. Without taking that risk nothing would get done. Cabinet had made the right decision to pursue PFI: it was disappointing that the Government had ended PFI. However other Administrations should have been tackling this problem many years ago.

    

 Councillor B. Markham commented that the Council had to move on and there were other items on this agenda that related to progress in respect of housing. The newly published Localism Bill included the reform of the HRA which was good news.

 

The Chair commented that Councillor Clarke had made a serious point that some properties with serious needs would not have worked carried out on them however, he was not being honest in his statement that the Council’s housing strategy being in tatters- other items on the agenda belied this. However, he did accept Councillor Clarke’s comments about PFI as a funding mechanism. PFI had been about regeneration and Decent Homes; both issues needed to be addressed. The Council would continue to try to secure Government funding. Although the Council appeared seventh on a national list of the worst decent homes backlogs there was no guarantee that funding would be given.    

 

RESOLVED:      That the report be noted.  

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