Agenda and minutes

To record apologies for absence and the attendance of substitute members. 

Councillors Alice Badcock and Ben Mabbett submitted apologies.

To receive any declarations of disclosable pecuniary interests in respect of items on the agenda for this meeting.  

None.

To receive notification of any matters which the chairman determines should be considered as urgent business and the special circumstances which have made the matters urgent, and to receive any announcements from the chairman. 

The chairman welcomed Cllr Robert Hall, who had recently been appointed to the committee and reported that Cllr Ben Mabbett had also been appointed but had been unable to attend this meeting.

The chairman informed the committee that she had met with Adrianna Partridge, head of corporate services, and had asked her to clarify to the committee, the respective roles of scrutiny and audit and governance committees.

The head of corporate services reported that scrutiny committee contributed towards the development of policies and strategy.  It could challenge decisions made by the executive and had a role in scrutinising delivery and performance. 

Audit and governance committee needed to satisfy itself that an adequate control environment was in place and, therefore, contributed towards the assessment of control processes and reviewed the operation of controls and procedural compliance. 

To receive any questions or statements from members of the public that have registered to speak. 

None.

To consider the report of the interim head of development, regeneration and housing (attached).

The committee considered the report of the interim head of development, regeneration and housing which set out actions that were being taken and which could be taken, within the Vale of White Horse, to increase the number of houses for rent or sale that were truly affordable to the average working family or person.

Councillor Elaine Ware, Cabinet member for housing, introduced the report. Also present to answer questions was Gerry Brough, interim head of development, regeneration and housing.

The Cabinet member reported that the provision of affordable housing that was truly affordable to everyone was an issue that national and local governments have been wrestling with for many years. At the heart of the problem was the fact that, to make housing affordable, houses for sale and/or rent needed to be available at below market value prices or rental levels. Reducing market value or rental levels meant houses needed to be built more cheaply or potential owners and tenants needed to be provided with some form of subsidy (most likely in the form of tax relief and/or housing benefit). Building houses more cheaply could only be done if the cost of land, materials, labour and capital could be reduced and no development profit, or less development profit, was allowed for.

In response to members’ questions, it was reported that:

·         The 2014 Strategic Housing Market Assessment for Oxfordshire(SHMA) uses a benchmark of costs not exceeding 35% of a household’s gross income to assess the affordability of rented accommodation. Based on this criterion, even the least expensive 2 bedroom homes for rent in the district were likely to be beyond the means of households whose earnings were within the lower quartile. Those on median level earnings were also likely to struggle with the cost of renting a modest 3-bedroom home.

·         Although the SHMA benchmark was used by planning policy, a more accurate assessment of affordability would be the Institute of Public Policy Research criteria which were based on net, rather than gross, income.

·         The lower quartile property purchase price in the Vale, in 2016, was £255,000. Assuming a deposit of 10% was available to a purchaser, the minimum annual income needed to obtain a mortgage for the balance would be £57,375, which was well in excess of both lower quartile and median earnings in the Vale.

·         Despite the lack of truly affordable housing, the Vale had the lowest homelessness rate in Oxfordshire.  However, it was recognised that there was an increasing number of people who did not have a home of their own but did not meet the statutory definition of homelessness.

·         1,122 new build affordable homes had been completed in the Vale between April 2012 and March 2017 of which 834 were for rent and 288 for shared ownership.

·         The provision of newbuild homes for shared ownership had been through Registered Providers (RPs). Whilst Section 106 agreements stipulated that the initial share purchase could be as low as 25%, some RPs advertised their preferred model of a minimum 40% share  ...  view the full minutes text for item Sc64

To consider the report of the head of finance (to follow).

The committee considered the head of finance’s report.  This brought together all relevant information to allow Cabinet to recommend to Council a revenue budget for 2018/19 and a capital programme for 2018/19 to 2022/23.  The Medium Term Financial Plan (MFTP) was included, which provided details of the forward budget model for the next five years.  The report also recommended the prudential indicators to be set by the Council in accordance with ‘the Prudential Code’, introduced as part of the Local Government Act 2003. 

Councillor Robert Sharp, the Cabinet member for finance, introduced the report. Also present to answer questions were William Jacobs, head of finance, Simon Hewings, strategic finance manager and Richard Spraggett, chief accountant (Capita).

Councillor Emily Smith had registered to speak at the meeting. In response to her questions, it was reported that:

·         Revenue growth bid CSVR1: This was a one-off bid to fund feasibility studies and exploratory work on the installation of electric charging points.

·         Revenue growth bid DAHR1: These were the additional costs associated with the council hosting the Oxfordshire Growth Board, including support staff. The council would be host for 12 months from July 2019, which was why a proportion of the cost extended into the following year

·         Capital programme, Abbey Meadows toilet block: Details of this expenditure were included in the previous year’s budget.

In response to members’ questions, it was reported that:

·         West Way capital receipt: The West Way receipt had not yet been allocated so was funding the capital programme, reducing the borrowing requirement at this time. Potential leisure investment projects in the Botley area were under review with a report anticipated in 2018/19.  Consideration would also be given to a suitable investment opportunity should one arise.

·         Budget adjustment, reduction in West Way rent: The rental income was approximately £600,000 p.a. but the budget had already been reduced in the previous year to reflect the closure of some units.  The figure for 2018/19 and future years reflected the final position following the sale completion.

·         Budget build change CLIR1: A review of ongoing internal IT costs had revealed that costs of approximately £111,000 p.a. had been removed incorrectly from the budget when the 5 councils’ partnership contract went live.  This provision corrected the error.

·         Budget build change CMTR1: This was one-off expenditure to meet the new requirements of the General Data Protection Regulations. If the feasibility work determined that new IT hardware was required, the additional costs would be included in future budgets.

·         Budget build change DAHRE2:  The flexible homelessness grant funding had already been received and was in reserves.  The Syrian refugee grant funding would be received in 2018/19.  A budget was required in order to spend the funding already received.

·         Budget build change CMTR2: The Data Protection Officer post would be shared with South Oxfordshire District Council.

·         Budget build change CMTR3: This was the estimated cost of the senior levels of the management restructure as agreed by Council and the restructure of the client team which was out for consultation at  ...  view the full minutes text for item Sc65

To review the attached scrutiny work schedule. Please note, although the dates are confirmed, the items under consideration are subject to being withdrawn, added to or rearranged without further notice.

The committee considered its work programme and noted that its meeting scheduled for 31May was likely to be rearranged.