Housing Outline HRA Capital Programme 2023-2024
North Lanarkshire Council · 10 May 2023
Back to Housing Committee — 10 May 2023 and its agenda
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North Lanarkshire Council Report Housing Committee Does this report require to be approved? ☒ Yes ☐ No Ref: Date 10/05/23 Housing Outline HRA Capital Programme 2023/24 From Chief Officer (Housing Property Services) E-mail BarrCa@northlan.gov.uk Telephone 1. Background 1.1 Committee will recall in May 2020, a 5-year outline HRA Capital Programme from 2021/22 to 2025/26 was approved which proposed spending over £266million on the housing stock during the lifetime of the plan. 1.2 Further reports outlined that new priorities would be added as required based on new priorities and further recommendations from groups such as the Scottish Government Grenfell Inquiry Fire Safety Working Group (GIFSWG). 1.3 In common with previous plans, the aim of the 2023/24 plan remains to ensure the stock continues to meet the Scottish Housing Quality Standard (SHQS) as well as the EESSH2 standard which requires all social housing meet EPC band B or is as energy efficient as practically possible by the end of December 2032 (within the limits of cost, technology and necessary consent). Executive Summary The purpose of this report is to seek approval from the Housing Committee for the mainstream Housing Capital Programme (excluding new build) for 2023/24 Recommendations It is recommended that the Committee: - 1. Approve the HRA Capital Programme for 2023/24 as outlined in Appendix 1 The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition statement All ambition statements
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1.4 Significant challenges were faced by the council throughout 2022/23 in terms of the lasting impact of the pandemic. This included issues with contractor availability as well as the well documented nationwide issues relating to increasing costs. It is anticipated these issues will continue to be seen throughout the 2023/24 investment programme. 1.5 Increasing costs in all sectors have resulted in the current cost of living crisis where specifically relating to fuel costs in a 2022 survey, Age Scotland highlighted 4 in 10 older people self-identified as feeling they were living in fuel poverty with 76% of respondents always concerned about paying their fuel bills. 1.6 The council has no ability to influence increasing global energy costs but committee can be assured that actions to reduce, wherever possible, their impact are the forefront of investment decisions proposed for tenants’ homes. More details of the type of works proposed within the 2023/24 capital programme are provided in the report. 2. Report Capital Resources – HRA Programme 2.1 As part of the current 5-year investment plan, detailed spending proposals for 2023/24 have been prepared for Committee’s consideration as outlined in Appendix 1. 2.2 As previously mentioned, the ongoing effect of the Covid-19 pandemic and Brexit on the construction industry on the availability of materials and labour, has had an impact on the phasing of the capital programme delivery and continues to do so. The 5-year programme is summarised in the table below and demonstrates that the council continues to aim to complete record investment in its housing stock during the 5-year planning term. Table 1 2021/22 2022/23 2023/24 Indicative 2024/26 Total £000 £000 £000 £000 £000 Working Capital Programme 74,379 60,745 70,260 141,064 346,448 Slippage 6,752 5,795 6,387 12,824 31,758 Current Capital Programme 67,627 54,950 63,873 128,240 314,690 Reprofiled Expenditure (13,042) 1,916 (2,991) 14,117 - Revised Capital Expenditure 54,585 56,866 60,882 142,357 314,690 2.3 Slippage allowances of approximately 10% have been added to the 2023/24 programme to arrive at a “working programme” as detailed in Section 2.4. 2.4 The working programme (Table 2) considers the projected carry forward commitment but may be subject to adjustment depending on the final outturn of the current 2022/23 programme.
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TABLE 2 – Resources 2023/24 £000 Prudential Borrowing 32,871 Capital Funded from Current Revenue (CFCR) 22,476 Total projected resources 55,347 Slippage allowance 5,535 Working programme 60,882 2.5 HRA Capital Programme details 2.5 Heating 2.5.1. The 2023/24 programme will see the continuation of the replacement of existing heating systems based on their age. This programme involves installing gas condensing boilers which, unlike older models which use energy all the time, modulate energy usage when not needed which can save money on energy bills for users. This type of change is important for tenants when according to the Office of National Statistics (ONS), electricity prices in the UK rose by 66.7% and gas prices by 129.4% in the 12 months to January 2023. 2.5.2 The council’s programme for the installation of solar photo voltaic (PV) panels started in 2022/23 and will continue throughout 2023/24. Such installations enable households to use any electricity the PV panels generate for free and then pay for any further electricity requirements they need. If households generate more electricity than they need, it can be sold back to the National Grid. 2.5.3 Other renewable technologies such as air source heat pump installations will also continue to be utilised wherever appropriate to assist with the meeting of the council’s EESSH2 and Net Zero compliance requirements. 2.5.4 Within the 2023/24 programme there will also be an increase in the council’s loft and cavity wall insulation programmes to improve the energy efficiency of properties. This programme will also include for the installation of underfloor insulation to tenants’ homes where appropriate. 2.6 Windows/Door Replacement 2.6.1 The council experienced contractual issues relating to its triple glazing programme within its 2022/23 programme. 2.6.2 In February 2023, Committee approved the acceptance of new contracts for these works meaning that the backlog of tenants for whom the programme was expected to have new windows in 2022/23 will be prioritised throughout 2023/24 as well as additional tenants’ homes also being able to benefit from these works. 2.7 Roofing and Rendering 2.7.1 The external insulation upgrading of non-traditional BISF properties continued in 2022/23 and the current programme is planned to complete in 2023/24.
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2.7.2 The upgrading of the roofs and insulation levels of non-traditional properties in the Lomond Road area in Coatbridge also started in 2022/23 and will continue throughout 2023/24 subject to available decanting arrangements. 2.7.3 Within 2021/22, the council introduced a significant change whereby it ended the installing of just render to tenants’ home and introduced the fitting of external wall insulation to tenants’ homes. The programme also introduced the installation of integrated PV panels to re-roofing works wherever possible. These works will continue in 2023/24 as part of the councils “fabric first” approach to improving the energy efficiency of tenants’ homes. 2.7.4 It should be recognised that with the change noted in 2.7.3, the costs for owners in mixed tenure blocks that they would require to pay to have the work undertaken to their homes have increased considerably even after the installation of any potential grant aid. For a number of tenants in such blocks, owners’ inability to pay for such work may have an impact on the council being able to undertake works to their homes. Wherever possible the council will look to see if there are other options which may assist owners to try to ensure that as many tenants as possible benefit from the installation of external wall insulation to their homes. 2.7.5 The council will continue to support the Scottish Government’s Energy Efficient Scotland: Area Based Scheme (EES: ABS) for owners within its 2023/24 programme. Following consultation with the Scottish Government on the programme, it is anticipated that following agreement with a number of owners to pay the required contribution towards the works, the programme will complete works to a number of blocks also including tenants’ properties in Kilsyth in 2023/24 and look to start discussions with owners in Bellstone non-traditional house types initially in the Wishaw area. 2.8 Lead pipe replacement 2.8.1 The ongoing lead pipe replacement programme of external pipework will continue in 2023/24. 2.9 Door Entries 2.9.1 The council is aware the concern residents can have when door entry systems to their blocks of flats are not working. New contractual arrangements put in place in 2022/23 will ensure that the programme for the replacement of door entry systems beyond repair will continue throughout 2023/24. 2.9.2 As with other works in mixed tenure blocks, owners’ inability to pay for such work may an impact on the council being able to replace system to closes. As outlined previously, the council will look to try to assist owners, wherever possible, in terms of their legal requirement to maintain the common areas of blocks with options such as interest free payment plans for up to 5 years subject to the amount of monies involved. 2.10 Electrical Work 2.10.1 The council will continue to ensure the safety of tenants through the undertaking of electrical safety checks as now required as part of the Scottish Housing Quality Standard (SHQS). An outcome of these checks could result in a number of tenants requiring to have their homes rewired which will be undertaken as part of this proposed 2023/24 programme. Where it is deemed necessary to ensure a tenants continued
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safety these works may be undertaken via the forced entry process, previously approved at committee in September 2021. 2.10.2 The replacement of communal close lighting and electrical switchgear (where appropriate) within blocks of flats will also continue in 2023/24 with works continuing to focus initially on fully tenanted blocks and blocks with identified problems containing owner occupiers who share repair responsibilities for these elements with the council. 2.11 Kitchens and Bathrooms 2.11.1 The programme for replacement kitchens and bathrooms within 2023/24 will continue largely relating to properties where tenants have previously refused works and/or works required in void properties. 2.11.2 There is currently no change to the previous proposal to recommence the kitchen replacement programme in 2025/26 based on a 20-year lifespan based on the previous programme for replacements having started in 2005. 2.12 Tower Strategy 2.12.1 The replacement and refurbishment of lifts as required within our high-rise stock will continue in 2023/24 in addition to the replacement of elements such as fans, pumps and replacement tanks as required in terms of the council’s inspection regimes. 2.12.2 The installation of a sprinkler system to the last remaining tower in the Flemington area will complete in 2023/24 with the programme moving to Redbridge and Coltswood Towers in Coatbridge later in 2023/24. 2.12.3 The contract for upgrading works at Blairgrove/Merryston/Glen and Millbrae Towers in Coatbridge which were significantly delayed due to the pandemic were completed in 2022/23 with additional follow-on works to the towers due to be completed within the 2023/24 programme. Work will also continue in 2023/24 with the development of the project for the external upgrading works at Whifflet and Calder Towers in Coatbridge with an aim of increasing the thermal efficiency of the flats for the residents of the towers. 2.13 Ambition 2.13.1 The re-provisioning programme continues in 2023/24 with the completion of the demolition of low-rise flats in Shawhead scheduled for the second quarter of 2023/24 and the continued work to demolish the high-rise towers at Coursington, Allan and Draffen Towers in Motherwell. Contracts have also been awarded for the demolition of low-rise blocks in Gowkthrapple and Jackson Court in Coatbridge 2.14 Community Care 2.14.1 Following completion of the upgrading works to the sheltered complex in Dundyvan Co, design work continues on the development of upgrading plans for Phyllis Jane Court in Wishaw which will be the subject of discussion with residents later in the 2023/24 financial year. 2.14.2 It is also planned to commence work on the changeover of several existing warden call systems to new digital system with increased service capacity in addition to the upgrading of the electrical systems serving communal areas.
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2.14.3 Design work will also continue in 2023/24 regarding the installation of lifts between the floors in the John Smith Court sheltered housing complex in Airdrie to improve the use of all areas of the complex for residents. 3 Measures of success 3.1 Provide safe, improved and sustainable domestic properties for the tenants of North Lanarkshire Council. 3.2 Ensure the domestic properties within North Lanarkshire Council’s housing stock continue to meet SHQS and improve compliance rates relating to EESSH2 and Net Zero requirements. 3.3 Meet the aspirations of tenants, families, and carers of residents of sheltered housing complexes living with dementia. 4. Supporting documents 4.1 Appendix 1 – 2023/24 HRA Capital Programme Brian Lafferty Chief Officer (Housing Property Services)
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? It is anticipated that along with other proposed works that the programme will help alleviate fuel poverty and provide warmer more affordable homes for our residents. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your- community/equalities/equality-and-fairer-scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Financial Solutions have been involved in the development of the information contained within this report. Provision for the anticipated programme was noted within the 2023/24 revenue estimates process with the detailed programme included in Appendix 1. As detailed in the HRA Report for 2020/21 in February 2020, new low carbon technologies and potential procurement methodologies and arrangements continue to be introduced into the mainstream investment programme with the aim of ensuring EESSH2 compliance by 2032. For 2023/24 an allowance of £7.5million is included within the HRA Capital programme in Appendix 1 which may be required to try to accelerate works programmes subject to the restrictions detailed in Section 2.6.4. Use of this proposed allowance would be subject to an adjustment to each year’s individual programme as reported to Committee and be the subject of additional HRA borrowing. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact?
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5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The contracts awarded to deliver the HRA capital programme will assist in promoting health and wellbeing of residents within North Lanarkshire as well as helping reduce our carbon footprint and meet carbon management targets. Contractors will adopt environmental and sustainability measures and ensure environmentally friendly recycling practices are evidenced. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed?
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Risk will be minimised and managed by designated Contract Administrators and Managers in accordance with the works specification and the Council’s agreed approach to Contract and Supplier Management. High level risk reviews and risk logs will be recorded as part of the project management process. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in- Service or ex-Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services.
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Appendix 1 - 2023/24 HRA Capital Programme Programmes TOTAL Estate Regeneration Estate Regeneration Sub TOTAL £50,000 Energy Efficiency Heating £11,670,788 Windows & Doors £6,155,530 Decarbonisation funding £4,196,952 Sub TOTAL £22,023,270 Major Repairs Major repairs £471,454 Roofing/Rendering £14,330,634 Sub TOTAL £14,802,087 Home safety and security Lead Pipe replacement £727,472 Door entry replacement £1,119,187 Electrical work £1,231,106 Sub TOTAL £3,077,765 Internal upgrading Kitchens £1,231,106 Bathrooms £2,260,758 Sub TOTAL £3,491,864 Tower strategy Tower Strategy £10,509,212 Sub TOTAL £10,509,212 Community Care Community Care Sub TOTAL £1,377,501 Fees/miscellaneous Fees/miscellaneous Sub TOTAL £5,550,000 GRAND TOTAL £60,881,700