To recommend to Council for approval the addition of a £5m capital budget to enable delivery of housing provision.

The cabinet for finance and corporate services introduced the report.  It seeks approval of an additional £5m budget to the capital programme to enable delivering of housing provision.  This administrations housing strategy will be delivered in Autumn and will provide an element of affordable housing.  It is clearly aligned with the Place theme in the Council Plan, to support the right housing in the right place and as per the objective set out under the Growth scheme in the Delivery Plan, to secure accommodation for vulnerable people at risk of homelessness.  It also supports the Homelessness prevention and rough sleeping strategy 2025 which is aligned with central government policy in the Homelessness Reduction Act 2017.  It was noted that these statutory obligations impose a resource and financial burden on Herefordshire Council that has increased by almost 100% over the last two years in 2023/24.  It was confirmed that Housing Solutions spent £3,415,832.27 on temporary accommodation.  The current units available to accommodate homelessness were set out and it was noted that this £5m will establish a fund to enable Herefordshire Council to respond to opportunities to acquire and develop further housing provision to meet demand and decrease costs spent on temporary accommodation. 

The capital programme was approved by full Council in February 2024 and this report now proposes an in-year change to the approved programme.  The additional £5m to the capital programme is to enable Cabinet to take decisions when properties or land become available.  The £5m is added on the basis that any rental income will cover the running costs and provide a surplus to repay the cost of borrowing.  Homes England Grants will also be applied, as applicable, to reduce the overall borrowing costs and be added to the capital programme by the s.151 delegated powers. 

It was emphasised that inclusion in the capital programme is not approval to proceed. Each project will be subject to its own governance and a full business case will be presented, and in full compliance with contract procedural rules.  The aim of capital expenditure is to benefit the community through improved facilities and promoting economic growth.  It was confirmed that any project within the Delivery Plan will seek to minimise any adverse environmental impact.  It was further stated that the addition of £5m to the capital programme is on the basis that any borrowing requirement will be funded from surplus income and there are no financial implications for the revenue budget. 

Cabinet members discussed the report, it was noted that the report provides a degree of nimbleness to respond to need.  It was confirmed that it is not an agreement to spend but to look at opportunities as they become available. It was further noted that during Covid there was a period of time when the Council were seeking to make similar acquisitions but the Council were not able to do so due to constraints and therefore this report was welcomed.   

Group leaders gave the views of their groups. The report was welcomed  ...  view the full minutes text for item 16