Agenda item

Report of the Director of Community and Children’s Services.

The Sub Committee received a report of the Director of Community and Children’s Services which updated Members on progress with the Housing Major Works Programme and advised Members on issues affecting progress on individual schemes.

During questions, the following points were noted:

1.       The Assistant Director drew Members attention to paragraph 14 of the report, which set out the significant pressure the HRA is experiencing. Officers are liaising with the Chamberlain to reassess the affordability of the current Major Works Programme. It is highly likely that there will be at least a two-year gap before being able to bring forward the 2nd phase of the major works projects, which are currently unfunded. A more detailed report from the Chamberlain's Dept will be presented the Grand committee on 8th June, which will set out the full financial position, along with the challenges in terms of project delivery and options. This will be a non-public report and for decision by the Grand Committee.

2.       There had been no slippage in the windows programme since the last report to this Sub Committee.

3.       Data was constantly being updated, given the rising construction costs.

4.       The original 5 year plan, drawn up in 2015, had been extended to 7 years.  This Sub Committee frequently receives reports from the City Surveyor in terms of how they are seeking to maximise funding from alternative funding sources; i.e. - housing decarbonisation grants.

5.       The  HRA is a ring-fenced account and cannot be used for any other purpose.

6.       The second phase of the MWP does not currently have funding identified and, it is likely that there will be a two-year ‘gap’ between the completion of Phase 1 of the MWP and the commencement of Phase 2. The position is changing however, for example, the City Corporation will soon be receiving a rental income stream from the 66 new units at COLPAI, with other new development projects also being completed in subsequent years. The HRA will eventually recover, but this is likely to take a few years.

7.       The team has had some recent resourcing issues, in common with the construction sector nationally and, to maintain momentum with the MWP, has appointed external consultants to cover some vacant posts. Wherever possible, the City Corporation will keep these services in-house, so that there is a strong link between residents and the team.  In the past, the team has shared resources with the City Surveyor, and this remains an option.

8.       Members received a presentation at the last Community and Children’s Services Committee Section in respect of Section 106 Funding, noting that this is currently depleted, as it was used up on schemes at York Way, Sydenham Hill and COLPAI, and there are no new builds imminent in the City.

9.       Section 20 Consultation was underway for the Southwark Estates window replacement but due to rising inflation, officers are constantly reviewing affordability for the HRA, and seeking to fix prices with contractors as part of the tender process.  Officers anticipated final Committee approval on 5^th June and, after this date, Members would be provided with a realistic completion date.  However, Members were asked to be mindful of delivery delays due to high demand for materials.  In the interim, the general redecoration works were underway to improve the appearance of the Estate.

10.    Pre the pandemic, nearly all projects came in at 20% under the costs predicted at Gateway 5 (‘Authority to Start Work’  - in the City’s Project Management Procedure). This is not the case now.

11.    Officers had been designing a new website, which would set out progress on each project and be accessible for residents, together with hard copy options.  ‘Meet the Contractor events’ had been planned and there is a designated Resident Liaison Officer and Clerk of Works on each estate.

RESOLVED, that – the report be noted.