The Resources Overview and Scrutiny committee were provided with a report pack for the meeting on the 10th of December 2024 that included the second quarter update for both the capital and revenue budgets. The committee was also provided with reports on the Council Tax Support Scheme, the Discretionary Housing Payment Scheme, and draft proposals for an Article 4 Direction on Houses in Multiple Occupation and supplementary planning guidance.

Houses in Multiple Occupation

The committee was presented with a report pack that included draft proposals for an Article 4 Direction on Houses of Multiple Occupation, the evidence base used to support it, and draft Supplementary Planning Guidance.

The evidence report stated that:

Over the past 18 months there [has been] a significant increase in the number of planning applications for Houses in Multiple Occupation (HMO’s).

The report suggested that the increase in HMOs may have contributed to social and economic problems in Hyndburn. This included the increasing deprivation in the borough, with Hyndburn ranked 18th most deprived of all the local authority areas in England according to the 2021 census. The report stated that:

It is no coincidence that the wards with the lowest house values are also characterised by higher levels of deprivation and higher numbers of HMO’s.

In response to the increase in HMOs, an Article 4 Direction was proposed that would cover the wards of Barnfield, Central, Church, Clayton-le-Moors, Netherton, Peel, Rishton, Spring Hill and St Andrews. The report pack also included draft supplementary planning guidance for determining planning applications for HMOs after the adoption of the Article 4 direction. This guidance would prevent any new HMOs in the wards covered by the Article 4 Direction unless:

there are exceptional circumstances that support the development the HMO proposed.

In all other wards, the guidance would prevent the approval of new large HMOs¹ unless they satisfied a number of criteria concerned with their location, the quality of the accommodation they would provide, and their impact on the amenity of their neighbours.

Capital Programme 2024/25

The committee were provided with a report that set out the capital programme for 2024/25. The total value of the capital programme was £44.144 million.

The report pack included details of the sources of funding for the programme. 62% was expected to come from external grants, including £20 million from the Levelling Up Fund for the redevelopment of Accrington Town Centre. The report noted that:

It is crucial that the external funding is secured, and grant works are claimed on a frequent basis.

26% of the programme's costs were expected to be met from the council's reserves. The remaining 12% was expected to come from capital receipts from the sale of council assets. £1.555 million of those assets still needed to be sold.

The report pack also included details of all of the schemes that were expected to be completed in 2024/25, along with the costs associated with them. The schemes that were scheduled to be completed in 2024/25 included:

• £788,000 on operational buildings;
• £668,553 on parks and open spaces;
• £234,062 on IT projects;
• £101,000 on vehicles and equipment;
• £78,471 on community projects;
• £209,710 on the Planned Asset Improvement Programme;
• £10,624,849 on the Leisure Estate Investment Programme;
• £19,386,362 on Levelling Up schemes;
• £388,441 on projects funded by the UK Shared Prosperity Fund;
• £1,940,699 on the Housing Improvement Programme.

The report also highlighted some potential risks, including delays in securing external funding, the planned sale of council assets, and to the completion of major schemes.

Revenue Budget Monitoring 2024/25

The report pack contained a summary of the revenue budget for 2024/25. A total of £16.122 million had been budgeted. The report estimated that expenditure would be £16.037 million, an underspend of £85,000, which would largely be due to higher than expected investment income.

This underspend would be offset by a number of pressures on the budget. This included £850,000 of financial assistance for Hyndburn Leisure, an overspend of £284,000 on Housing Benefit payments, and the need for the council to find alternative waste disposal arrangements following the potential closure of the Whinney Hill site. The report stated:

Negotiations are underway with Lancashire County Council regarding their contract situation for the disposal of waste at the Whinney Hill site. This may require Hyndburn and the other East Lancashire districts to find alternative sites to dispose of their residual household waste.

There was also uncertainty about the cost of implementing mandatory food waste collections in April 2026, and the level of this year's pay award, which had not yet been agreed.

Council Tax Support Scheme

The committee was provided with a report on the Council Tax Support (CTS) Scheme. The report pack provided an overview of how the scheme had been administered since it was introduced in 2013, how it had changed, and the current caseload.

The report pack noted that the scheme was originally introduced after the national Council Tax Benefit was abolished by the Welfare Reform Act 2012. It explained that:

Government funding for the previous Council Tax Benefit scheme was demand-led, whereas Council Tax Support will be funded by a cash-limited grant which will be 10% lower than our 2011/2012 Council Tax Benefit spend.

The report pack also noted that the scheme has been amended three times since its introduction, reducing the maximum level of support available to claimants of working age from 80% to 70%. This meant that, by April 2017:

no working age claimant will be entitled to have 100% of their Council Tax liability met through CTS.

Discretionary Housing Payment Scheme

The final item for discussion was the Discretionary Housing Payment (DHP) Scheme. The report pack provided an overview of the scheme, when payments can be made, and the council's objectives for administering it. The committee was also provided with data about the caseload and the amount of money spent on the scheme.

The report pack noted that the scheme is intended to help people who are already claiming Housing Benefit or Universal Credit to meet their housing costs, but still require additional financial help. It listed a number of reasons why someone might qualify for DHP. This included:

• Reductions in Housing Benefit or Universal Credit where the benefit cap has been applied;
• Rent shortfall due to a rent officer restrictions such as local reference or shared accommodation rate;
• Rent deposits.

The report pack also noted that there had been a steady decrease in the value of awards made since 2020/21. This was because:

Any unspent DHP funding from the DWP contribution is returned to DWP at the end of the financial year.