Agenda item

Resolved: That the following comments regarding Budget Cut CUS15 be referred to the Public Accounts Select Committee:

“some members of the Housing Select Committee have serious concerns about the impact of the proposed budget cut without first having the opportunity to scrutinise the findings of the independent review of the council’s No Recourse to Public Funds service.”

David Austin (Acting Chief Financial Officer) introduced the report. The following key points were noted:

1.1  The Council continues to work towards finding cuts of £12m for next year. £9m of this target is currently being presented to scrutiny.

1.2  The cuts identified as falling within the remit of the Housing Select Committee are: CUS15, cuts to the No Recourse to Public Fund (NRPF), and CUS16, cuts to the Private Sector Housing Agency.

Lee Georgiou (SGM Housing Needs and Refugee Services) introduced proposal CUS15:

1.3  The Council has put £3.5m into the NRPF budget over the last 3 years. The service is now underspending and CUS15 is about recouping that money to be used on other services.

1.4  There are two elements to the NRPF budget: the administration of the team and the spend on service.

1.5  CUS15 is intended to realign the budget with the actual spend. It is not going to impact on staff or services being provided to families approaching the council.

1.6  The NRPF service has reduced its caseload significantly, helping the vast majority of cases receive settled status and entitlement to mainstream benefits. This has helped reduce the service’s costs.

1.7  The committee asked a number of questions. The following key points were noted:

1.8  The committee noted that the report of the independent review of the NRPF service has not yet been scrutinised by the committee.

1.9  Some members of the committee felt that they were unable to properly assess the cut proposal and underspend in the NRPF service without having seen the independent review.

1.10      There may be challenges and changes in demand for the NRPF service in relation to Brexit. There is a risk that the number of people approaching the service for assessment will increase.

1.11      Extra funds would be provided if there was a spike in demand.

Nick Stabeler (SGM Private Sector Housing Agency) introduced proposal CUS16. The following key points were noted:

1.12      Proposal CUS16 is to reduce the Private Sector Housing Agency budget by £175k.

1.13      £125k of this will be delivered through operational savings in relation to the Council’s proposal for a new borough-wide licensing scheme and the development of more effective techniques for identifying properties that fall below the standard.

1.14      £50k will be through a new enforcement process and money recouped through civil penalty notices.

1.15      There will be no negative impact of service or staffing.

The committee asked a number questions. The following key points were noted:

1.16      The £50k saving from money recouped through civil penalty notices is a conservative estimate based on the experience of other local authorities.

1.17      The committee asked if the new IT system would be resilient enough to provide trouble-free licensing for thousands of new properties.

1.18      The current IT system requires manual data entry. The new IT system will be more automated and less resource intensive. It will also be from the same provider and based on the same database.

1.19      There are contingency plans in place if the Council’s application for a full borough-wide licensing scheme is not approved by the Secretary of State.

Resolved: That the following comments regarding Budget Cut CUS15 be referred to the Public Accounts Select Committee:

“some members of the Housing Select Committee have serious concerns about the impact of the proposed budget cut without first having the opportunity to scrutinise the findings of the independent review of the council’s No Recourse to Public Funds service.”