No apologies for absence were received.

To receive any declarations of interest from Members in accordance with Paragraph 9 of the Members’ Code of Conduct. (See attached guidance)

Item 9 – Sempra Homes Business Plan and Financial Strategy

Councillor Henry declared an Other Registrable Interest as a Director of Sempra Homes and removed himself from the Committee for the item.

Confirmation of the Minutes of the meeting of the Cabinet held on 7 December 2023.

The minutes of the meeting held on the 7 December 2023 were agreed as a true record and signed by the Chairman.

(For voting see Appendix, Column 1.)

The Cabinet noted its work programme.

Cabinet were advised that Brooke House was a Grade II listed building comprising of eighty four residential flats which required significant refurbishment to be brought up to modern day standards. Refurbishment was originally scheduled in 2022, with an anticipated budget of £5m. Members were advised that after further intrusive investigations, more items of work were identified and needed to be added to the scope, which would significantly increase the cost and complexity of the works. It was explained to Members that those works included fire stopping between the flats, the external staircase needed significant repair and/or replacement in parts and a roof replacement. Members were advised that as the building had listed status, undertaking significant works and ensuring the building was energy efficient was more difficult and costly to implement.

The detailed specification of required works to put the building into a good condition had been costed at £14 million, and with exclusions and contingencies, the estimated costs were £16 million. Cabinet were further advised that it was originally anticipated that the work could be undertaken with the occupants in situ, but as the additional work was more intrusive it was anticipated that all residents would need to be temporarily re-housed whilst the work was completed and therefore, a decant of Brooke House would be required to safely carry out the works.  Moving all residents to alternative accommodation could potentially take considerable time and therefore it was imperative that the decant process was started immediately so the works could be undertaken at the earliest opportunity.

The Cabinet considered the advantages and disadvantages of the options detailed within the report, which included the recommended option for Members consideration which was to temporarily decant all residents and conduct a full refurbishment.  

Option 1 – Do nothing once building is emptied. This option involved:

1)    The permanent decant of all residents, to allow essential works to the staircases and roof to be undertaken.

2)    The compulsory purchase of leaseholders.

Option 2 – Permanent decant of all tenants & leaseholders, refurbish and use as social housing. This option involved:

1)    The permanent decant of all social tenants,

2)    The compulsory purchase of leaseholders, and;

3)    Undertake the works and then move 84 social tenants back into the building.

Option 3 – Temporary Decant of all tenants and leaseholders, refurbish and use as social housing. This option involved:

1)    Temporary decant of all residents (private and social), and;

2)    Option for permanent move if this is tenants preference,

3)    Consideration of Council purchasing leasehold properties 

4)    Undertake the works and then move residents who wish to back into the building.

Option 4 – Permanent decant of all tenants and leaseholders, refurbish and sell flats. This option involved:

1)    The permanent decant of all social tenants;

2)    The compulsory purchase of leaseholders, and;

3)    Undertake the works;

4)    Market and sell 84 homes privately. 

Option 5 – Permanent decant of all tenant and leaseholders and sell whole block in current condition. This option involved:

1)    The permanent  ...  view the full minutes text for item 5.

Cabinet was advised that the current council Housing Allocation Scheme had been introduced in 2014 and was most recently reviewed in 2022. It was explained that the scheme was designed to ensure that the limited social housing the council had available was used appropriately and supported the needs of residents, the corporate objectives of the council and was reflective of current legislation.

It was reported that the council’s spend on temporary accommodation was expected to be £2 million by the end of the financial year and it was explained that Local Authorities across the country were receiving unprecedented demand for housing due to several socio-economic factors creating a budgetary impact because of increasing rental charges and rising inflationary costs. The amendments to the Housing Allocation Scheme were to ensure that limited social housing was allocated in the most effective way to ensure a reduction in temporary accommodation expenditure.

Members were advised that the report set out a number of proposed amendments to the current Housing Allocation Scheme for approval and approval was also sought for a public consultation to be undertaken. It was confirmed to Cabinet that a further report detailing the outcome of the consultation and the proposed amended Housing Allocation Scheme would be brought back to Cabinet for final consideration and approval.

Cabinet were provided with the alternative options that were set out as below.

Progress with the consultation and the proposed changes - Cabinet consider the Housing Allocations Scheme (2024) and opt to progress with the consultation in relation to the scheme. This was considered the preferred option as it would allow the council to effectively manage its housing stock and would allow residents an opportunity to feedback.

Do Nothing - Cabinet consider the Housing Allocations Scheme (2024) but opt to do nothing. This option was not deemed to be appropriate because, without a clear mandate and update to the Allocations Scheme, it would limit the council’s ability to maximise the use of social housing to meet the needs of residents and no reduction in temporary accommodation expenditure.

Adopt some changes - Cabinet consider the Housing Allocations Scheme (2024) but opt to only adopt some of the proposed changes. This option was not deemed appropriate as this would minimise the intended impact of the changes and may reduce the council’s ability to effectively manage its social housing stock.

Adopt different changes - Cabinet consider the Housing Allocations Scheme (2024) but opt to not adopt the proposed changes and looked to introduce new changes to the Allocations Scheme. This option was not deemed appropriate as the changes proposed follow industry best practise and have been checked for lawfulness by a legal professional.

RESOLVED –

That Cabinet approves the proposed amendments to the Allocation Scheme as set out in Enclosure No. 2 of the report for public consultation to be undertaken in accordance with the consultation planning document as set out in Enclosure No. 3 of the report.

(For voting see Appendix, Column 3.)

To consider excluding the public and press from the meeting during consideration of the following item(s) of business on the grounds that it is likely that, if members of the public and press were present during consideration of the item(s), there would be disclosure to them of exempt information as defined by paragraph(s) 3 of Part 1 of Schedule 12A to the Local Government Act 1972 and the public interest in maintaining this exemption outweighs the public interest in disclosing the information.

RESOLVED:

That the public and press be excluded from the meeting during discussion of items 8 and 9 on the agenda on the grounds that it was likely that, if members of the public and press were present during the item, there would be a disclosure to them of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 as set out in Paragraph 10 of the Council’s Access to Information Procedure Rules.

(For voting see Appendix, Column 4.)

Cabinet were advised that the council’s present ICT service desk was provided as part of the wider ICT Managed Service contract which was due to cease in May 2024. Tenders were invited from suppliers through the Crown Commercial Services RM6100 framework to supply an ICT service desk and the report sought Cabinet approval for the preferred supplier.

Alternative options were set out in the report for Members consideration.

RESOLVED –

1.     That the contract for an ICT service desk be awarded, in accordance with the outcome of the procurement exercise, to Total Computer Networks Ltd using the Crown Commercial Services framework for an initial contract term of 3 years for a value of £456,750. 

2.     That authority be delegated to the Director for People and Change in consultation with the relevant Cabinet Member to implement available extension periods for this contract, for a total of 1 further year, for an estimated total value of £152,250, subject to the Director being satisfied of adequate contractual performance measures, and 

3.     That authority be delegated to the Director for People and Change in consultation with the Head of Legal and Democracy to negotiate, agree and enter the detailed terms of the contract and any documentation to facilitate the implementation of the contract and any required extensions.

(For voting see Appendix, column 5.)

Cabinet were advised that on 9 March 2017 Basildon Council’s Cabinet approved a revised Business Plan for the council’s wholly owned company, Sempra Homes Ltd (Sempra). The Business Plan was based on Sempra developing new homes on a range of sites in order to provide a diverse range of housing to support the housing need of the borough whilst making a financial return to the council as shareholder. 

On 9^th December 2020 the council’s Housing Development Sub-Committee approved a refreshed business plan that set out how Sempra had progressed its New Homes delivery programme. A refreshed Business Plan was approved by the Sempra Homes Board of Directors on 14^th December 2023 with approval to take the refreshed Business Plan to Cabinet to consider for approval.

Alternative options were set out in the report for Members consideration.

RESOLVED:

1)    That Cabinet approves the refreshed Sempra Homes Business Plan, as detailed in Enclosure No. 2 to the report, and provide approval to the Sempra Homes Board to alter the plan, within the agreed financing levels, as any new opportunities come forward that will support the housing need of the borough, and;

2)    That Cabinet approves the appointment of an external Non Executive Director (NED) to the Sempra Board and delegates the recruitment and decision to appoint the NED, subject to a robust interview process, to the Council’s Chief Executive or delegated Shareholder representative in consultation with the Chairman of Sempra.

(For voting see Appendix, Column 6.)