The changes are proposed in two reports: the Housing Revenue Account Budget Setting Report (BSR) and the Housing Transformation Programme which together, set out how the council will target resources on those people in most need, to improve the efficiency of services and to make provision for savings.
The reports set out how the council will build at least 500 new council homes using £70 million, granted by the government as part of the Cambridgeshire and Peterborough devolution deal, and its own Right to Buy receipts from council house sales.
If councillors approve the recommendations in the reports, further efficiency measures would follow those already made.
These have included cutting the time taken to complete necessary repairs and health and safety works to homes and reducing the turnaround time to let a standard council home to a new tenant. This had reduced from 34 days last year, to 26 days in this financial year and the council has plans to improve this further.
The reports describe how the council proposes to deliver £1.2million of savings from the council’s housing service for 2017-2018 and recognise the need to make further savings in future years.
Savings are needed to ensure the council can deliver services on a reduced budget, and in the light of changes to government policy, including a requirement to reduce rents.
The transformation programme would deliver savings from:
- A review of management and staff levels in the Housing and the Estates and Facilities services, with staff to be consulted on restructuring proposals;
- Being clear about the services the council provides, and which repairs tenants are responsible for themselves;
- Exploring options for sharing some housing services with other councils.
Last year, the government instructed councils to cut social housing rents by 1% annually for four years and 2017-18 will be the second year of reductions, subject to any further instructions from government. The effect of this, over the four years, will be to reduce income to the council from rents by £14.88m by 2019-20.
Other legislative changes are expected to put pressure on the housing budget, including mandatory fixed term tenancies and the proposed sale of high value assets.
Cllr Kevin Price, Executive Councillor for Housing, said: “The £70m investment in new council homes made possible by the devolution deal is great news for Cambridge. It will enable us to build significant numbers of genuinely affordable homes for people in need, and tackle the housing affordability crisis.
“Whilst the devolution grant is welcome, it does not change the fact that the council faces continued pressure on its Housing Revenue Account finances and because of that we have to keep on finding new ways of being more efficient.
“Our transformation programme aims to modernise our services, make sure we can adapt to future government policy changes and to make sure we can continue delivering the really essential things that people need from us.
“Our priority remains focusing on those people who need our help the most and who are finding life tough. It’s our view that Cambridge must be a place in which everyone can live and flourish, not just the wealthy few.”
Cllr Price will decide whether to approve the recommendations in both reports at Housing Scrutiny Committee on 18 January.
** Reports presented to council committees are available on the council’s website: http://democracy.cambridge.gov.uk/ieDocHome.aspx
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