Issue - meetings

Impact of Housing and Planning Act

Meeting: 29/11/2016 - Cabinet (Item 116)

116 Housing and Planning Act 2016 and Welfare Reform and Work Act 2016 pdf icon PDF 136 KB

Decision:

1.     That the contents of the report be approved.

 

2.     That the additional workload arising from new responsibilities which impact on planning and development control be considered within the 2017/18 budget process be approved.

 

3.     That, in accordance with current policy, planning applications proposing Starter Homes in advance of formal government guidance being issued and enacted be resisted and for current policy to apply with regard to affordable homes. 

Minutes:

Decision

 

1.     That the contents of the report be approved.

 

2.     That the additional workload arising from new responsibilities which impact on planning and development control be considered within the 2017/18 budget process be approved.

 

3.     That, in accordance with current policy, planning applications proposing Starter Homes in advance of formal government guidance being issued and enacted be resisted and for current policy to apply with regard to affordable homes. 

 

Reason for Decision

 

To set out the implications for the Council and the Borough of the Housing and Planning Act 2016 and the Welfare Reform and Work Act 2016.

 

Financial

 

Housing and Planning Act

 

The impact on planning arises from the new and increased responsibilities that the Act brings in, specifically the creation and maintenance of the Brownfield Register and the technical requirements of assessing Permission in Principle.  There may also be an impact if there is an increased demand for Neighbourhood Plans which will require direct support.

 

There is a possible impact arising from the Act, and the associated Welfare Reform and Work Act, in reducing the amount of affordable accommodation that is available and increasing homelessness and possible bed and breakfast costs.

 

The sale of higher value council properties will require the HRA to pay an amount, as yet not known, to the Treasury each year.  It is estimated that this may be in the order of £5M per year which will require either actual sales to provide the funds or reductions in expenditure elsewhere in the HRA.

 

The administration of Pay to Stay may require top up funding within the Housing Revenue Account should the actual costs exceed the allowance from the government.

 

Welfare Reform and Work Act

 

The most significant impact arises from the 1% reduction in the rent of all Council homes that must apply each year for four years.  The impact of this compared to the previous rent policy is £30M over this period. This will be reflected in the Housing Revenue Account Business Plan but has already had the effect of restricting the new build programme beyond 2020.

 

The freezing of the Local Housing Allowance and other benefits, together with the reduction of the Benefit Cap, will directly lead to an increase in homelessness as tenants on Housing Benefit find their rents unaffordable.

 

Whilst all efforts will be made to cope with the additional workloads through existing resources it seems likely that some burden will fall to the Council.   

Risk Implications

 

The main risks identified are the potential increase in homelessness and reduction in the supply of genuinely affordable homes.

 

Health & Safety Implications

N/A

Equality Impact Assessments

The government has carried out the appropriate Equality Impact Assessments

Corporate Objectives

Ensuring economic growth.

Providing good quality affordable homes, in particular for those in most need.

A clean safe and enjoyable environment.

Monitoring Officer/S.151 Officer Comments

 

Monitoring Officer:  

 

The report identifies a number of legislative changes which will have a significant impact on the Council and the borough as a whole.  The detail of many  ...  view the full minutes text for item 116