Issue - meetings

The Social Services, Health and Housing Policy Overview Committee had provided constructive and supportive comments to the Cabinet on this report.

RESOLVED:

That the Cabinet:

1. Notes the outcome of the tenant and leaseholder ' test of opinion '. 

2. Resolves that, having taken account of the outcome of the tenant and leaseholder ' test of opinion ' together with those other considerations set out in the earlier Cabinet report dated 24th September 2009, it instructs officers to negotiate with Hillingdon Homes' Board the earliest possible return date to the Council of those functions currently delegated by it to Hillingdon Homes by way of a Management Agreement dated 1st May 2003  and in the event that no date can be agreed with the Board, to terminate the said Agreement on 30 April 2011 by invoking the break clause within it so that the delegated functions are returned back to the Council.

3. Authorises officers to work with Hillingdon Homes board members and staff to wind up or dissolve Hillingdon Homes and to take all other necessary steps to return those functions delegated to it back to the Council in consultation with the Cabinet Member for Social Services, Health and Housing.

4. Subject to recommendation 3 above, authorise officers to consult with Hillingdon Homes' staff and to take all other steps to comply with the Transfer of Undertakings [Protection of Employment] Regulations 2006.”

Reasons for decision

Cabinet considered in detail this major policy decision and endorsed the comments of the Policy Overview Committee. Cabinet was keen to stress that their decision was not a judgment on Hillingdon Homes, but rather a practical and organisational decision to further improve housing services and put residents first. The decision confirmed Cabinet’s wishes to bring housing services back under Council control at the earliest possible opportunity.

Cabinet noted that at its meeting on the 24th September 2009, it had considered a comprehensive report entitled “Future of Hillingdon Homes” setting out the background and rationale for returning Housing Management Services to the Council.

It was noted that the Council’s Arms Length Management Company (ALMO), Hillingdon Homes, had been set up in April 2003 following a positive outcome to a tenant and leaseholder test of opinion. This had enabled the council and residents to receive around £60m towards the cost of achieving the decent homes standard.  Hillingdon Homes had been successful in the delivery of that goal, two years ahead of the Government target.  In addition, services had continuously improved and tenant and leaseholder satisfaction had increased.  However, now these targets had been achieved, the future of the ALMO needed to be reviewed along with how best to continue to improve the services provided to tenants and leaseholders.

Cabinet recognised the following factors in making its decision:-

• Nationally improving performance of all social housing providers,
• Changes in flexibilities and freedoms promised by the government for ALMOs have not materialised,
• At the same time freedoms around borrowing and new build that were given to ALMOs have been extended to local authorities,
• The scale of the impact of the economic recession on the national public finances and the requirement for reduced future public spending has become apparent in the national Budget published in April 2009. There is an economic recession and the council needs to plan carefully for severely restricted budgets in the foreseeable future. 

In order to bring council housing services back in-house Cabinet decided at its September meeting to carry out a test of tenant and leaseholder opinion. Having regard to the results of that test and the above factors, Cabinet therefore considered a set of revised recommendations for the return of Housing Management Services to the Council at the earliest opportunity.

The Borough Solicitor informed Cabinet that the process that had been undertaken in order for Cabinet to make its decision was legally robust and would withstand scrutiny.

Alternative options considered

Cabinet could have decided to continue with the existing contract with Hillingdon Homes.

Officer to action:

Neil Stubbings, Adult Social Care, Health and Housing