Agenda item

Updates from the Cabinet Members on key areas within their portfolios are attached.

The Cabinet Member for Housing, Regeneration, Business & Economic Development will be in attendance to answer questions from the Committee.

5.1     The Committee received written updates from the Cabinet Member for Finance and Corporate Services and the Cabinet Member for Housing, Regeneration, Business & Economic Development on the key aspects of their portfolios. 

5.2     The Cabinet Member for Housing, Regeneration, Business & Economic Development responded to questions on the following issues:

          Regeneration

5.2.1   Church Street - The Committee noted that discussions are taking place with the Metropolitan Police regarding their taking a long term void shop on Church Street as a base for their neighbourhood teams serving Westminster.  This will replace the facility at Paddington Green until new facilities are provided as part of that development.  The Cabinet Member was asked about the development at Paddington Green.  He explained that the Church Street discussion related to a local neighbourhood initiative and was different to the policing operations that were provided at Paddington Green.  The latter was an issue for the Metropolitan Police and the Mayor’s Office for Policing and Crime (MOPAC).

5.2.2   Ebury Bridge & Tollgate Gardens -The Committee asked why the Council was still developing options for delivery of the Ebury Bridge Project when a vote by residents had taken place in 2013 and a planning decision obtained in 2014.  The Cabinet Member explained that property markets rise and fall while the Council’s social housing lists change and increase.  He stated that there was a need to reconsider how best to balance the community’s needs whilst also maximising the use of the land to ensure that the Council delivers the best regeneration possible.  He stated the Council will continue to look at the available options and will then revert to residents for their views.

          In response to a supplementary question, the Cabinet Member stated that he shared member’s frustration that regeneration has taken longer than expected.  However, much had been accomplished.  This included a nursery being built at Orchardson Street, Affinity Sutton taking possession of the Tollgate Gardens site, community space being provided in Church Street and ongoing consultation with residents on the Green Spine.  While the regeneration of Ebury Bridge, Tollgate Gardens and Church Street were moving forward these were complex projects with many different elements.  Unfortunately, some partner developers had withdrawn from projects which was out of the Council’s control.

5.2.3   Lessons Learned – The Cabinet Member was asked what, on reflection, he would do differently in relation to housing regeneration.  He advised that he would not tie the regeneration schemes to a resident vote on the basis that the Council is bound by the outcomes.  This prevents the Council from amending schemes where required or to take alternative decisions for wider benefits.

5.2.4   Housing Zone - Members asked for clarification on the funds allocated to Westminster under the Housing Investment Programmes provided by the GLA.  Barbara Brownlee, Director of Housing & Regeneration, advised that the Council would not be losing any funding following the review by the Mayor of London of all commitments made under the Housing Investment Programme.  The first funding agreement, which related to Lisson Arches, will be signed in the next few months.  This had been delayed due to genuine development issues which had now been resolved.  The second agreement was taking longer to complete as the Council was negotiating for a grant rather than a loan with a value of £23.5 million.  She was confident that the Council would obtain the former.  The GLA was also in discussions with the Council about the provision of additional funding.

          Affordable Housing

5.2.5   The Cabinet Member was asked whether the Westminster Home Ownership Accelerator Scheme was in operation.  The scheme enables tenants to build up an equity stake in home ownership at the end of their three-year tenancy in an intermediate rented home.  The Cabinet Member reported that the scheme which is being delivered by Dolphin Living is open.  He recommended that members visit the organisation’s website where they could view a video on how the scheme works.

          Housing and Planning Act 2016

5.2.6   In response to a request for clarification on the higher value void levy, expected to start in 2017/18, Barbara Brownlee explained that this was indefinitely delayed.

          Out of Borough Social Housing Placements

5.2.7   The Cabinet Member was asked whether the recent decision to purchase housing accommodation in Hounslow whilst also disposing of housing assets within Westminster represented value for money.  He considered that it had been as it maximised the amount of housing the Council could provide.  He clarified that the housing purchased in Hounslow is being used to provide affordable rented property and not temporary accommodation.  He advised that the accommodation would be to a quality and delivered in a timeframe that could not be provided for the same price in Westminster.  The accommodation was required in part because some regeneration projects were behind schedule and existing properties on the Ebury Estate which were in occupation were not fit for use.

          In response to a supplementary question Barbara Brownlee stated that the City Council had discussed its plans with the London Borough of Hounslow. It had asked the Council not to place homeless or problem families in the borough and the Council had kept to this agreement.

          Mayoral Consultations

5.2.8   The committee noted that the Mayor of London had published two documents for public consultation relating to Affordable Housing and Viability and a “Good Practice Guide” to Estate Regeneration.  Members asked whether the resulting guidance was likely to see the Council having to revisit any of its regeneration plans.  The Cabinet Member was of the opinion that it would not and that the Mayoral Strategy would support the Council in what it is attempting to deliver. 

          CityWest Homes

5.2.9   The Cabinet Member was asked whether a clause was required in the new repairs and major works contracts on improving communication with residents given how contentious these services are known to be for residents. He was also asked how quality service provision will be maintained when responsibility for the Intermediate Housing Service is transferred to and delivered by CityWest Homes. Councillor Astaire advised in respect of the former that the letting of new contracts will enable the Council to retain more control over works via a framework mechanism.  The intention is to include as part of the contract terms proper monitoring KPIs so that performance issues can be addressed promptly.  Good communications with residents would also feature as part of the contract.  The Cabinet Member stated in response to the latter that a primary feature of the Council’s housing policy is to increase the availability of intermediate housing.  He considered that the contract would ensure that the provision of services to facilitate this would be of the highest standard.

Employment

5.2.10The Committee noted that the Council had achieved the 8^th highest fall in the numbers of long-term unemployment in the 5 year period February 2011 to February 2016.  The Cabinet Member was asked whether the Council was looking at how long-term unemployment is being tackled successfully in other in boroughs.  He advised that it was.  It was also engaging with other organisations such as the West End Partnership as well as seeking expert advice from service areas within the Council on addressing the particular challenges facing those who are long-term unemployed.

Broadband

5.2.11In response to questions on broadband Barbara Brownlee advised that three providers had now expressed an interest in providing broadband to CityWest Home Estates.  The City Council was also in discussions with BT about re-visiting the provision of broadband connectivity in the West End.

Berwick Street Market Procurement.

5.2.12The Cabinet Member outlined the rationale for the decision to contract out the running of the market to an experienced private operator before summarising the timetable for the procurement.  He explained that while he would have liked to have evaluated the tenders, due to proposed Executive portfolio changes, this would be a matter for the new executive member with  responsibility for markets.

5.3     The Committee then submitted a number of questions in relation to the update from the Cabinet Member for Finance and Corporate Services. 

5.3.1   Members asked for details of the New Homes Bonus grant that the Council was due to receive from central government.  Steve Mair, City Treasurer, reported that the Council would receive £3.5m less in 2017/18 compared with 2016/17.  However, the Council was due to receive an additional £1.3m in social care grant which reduces the net overall budget impact to £2.2m.  He advised that officers had worked on the assumption that there would be a loss in the New Homes Bonus grant and had submitted manageable savings proposals to ensure that the Council budget for 2017/18 will balance.  Details of this will be included in the budget papers to be considered by the Budget Task Group.

5.3.2   Members asked for an update on the Moxon Street development.  Guy Slocombe, Director of Property, Investments and Estates stated that the decision to sell the site took place in 2013.  The contract agreement for the sale of the land to Ridgeford included two conditions.  The first is an implementable planning permission following resolution of any potential judicial review.  The second related is a successful resolution of any right-to-light claims by neighbouring property owners.  He advised that two judicial reviews in relation to the planning permission had been resolved and this condition has been discharged. Discussions relating to rights-of-light were taking place primarily with the Howard de Walden estate.  In response to a supplementary question, Steve Mair advised that the anticipated capital receipt from the sale is incorporated in the draft budget for 2017/18.

5.4     ACTION: 

(i)       Provide Members with details of the current and projected year-end underspend in the Council budget and the reasons for this (Action for: Steve Mair, City Treasurer/Martin Hinckley, Head of Revenue and Benefits)

          (ii)       Provide an analysis of the likely impact of the new business rateable values for West End businesses. Will this require any changes to the Council’s Discretionary Rating Appeals scheme and what changes are anticipated in the number of hardship applications this year? (Action for: Steve Mair, City Treasurer/ Martin Hinckley, Head of Revenue and Benefits)