The Climate Emergency and Sustainability Policy Development and Scrutiny Panel met on 22 January 2025 to discuss the Bath and North East Somerset Housing Plan 2025-2030, the Aequus Business Plan Refresh, and the council's budget proposals. The panel reviewed the council's housing strategy, the business plan for its wholly-owned development company, Aequus, and the draft revenue budgets for the upcoming financial year.

Bath and North East Somerset Housing Plan 2025-2030

The panel received an update on the Bath & North East Somerset Housing Plan 2025-2030. This plan outlines the council's commitment to providing affordable, safe, suitable, and high-quality homes, aligning with the Corporate Strategy, Economic Strategy, and Health & Wellbeing Strategies. The plan is structured around five key pillars: releasing land for housing, B&NES Homes and affordable housing, affordability across the housing market, housing support, and housing suitability.

During the discussion, Councillor Deborah Collins expressed disappointment at the lack of measurable targets within the plan, making it difficult to hold the Cabinet Member accountable for progress. She emphasised the urgency required to address the housing crisis. An officer explained that a suite of Key Performance Indicators (KPIs) exists and that the term 'slowly' in the report referred to incremental progress.

Councillor Jess David raised concerns about the shortage of four-bedroom homes in the social rented sector. Officers explained that such properties are highly sought after and expensive to build, and that work is underway to ensure efficient use of existing four-bedroom properties and to incentivise people to move if they no longer require that size of home.

Councillor Saskia Heijltjes inquired about waiting times for families on the housing register and the number of social houses made available since 2019. It was stated that approximately 1,000 families are in urgent need, with around 4,000 wishing to move. The Cabinet Member added that the council aims to own 1,000 units by 2033.

Councillor Grant Johnson noted that waiting times were moving in the wrong direction and asked for national comparisons. Officers confirmed that while the council compares well nationally, the trend of increasing waiting times is a national issue, with the council experiencing its highest number of people, including children, in temporary accommodation. This was attributed to families facing multiple challenges, including rent arrears, larger family sizes, and chaotic lifestyles, which mirrors national patterns.

Councillor Andy Wait asked about referrals from outside BANES, and officers confirmed this was generally a reciprocal arrangement, with people fleeing domestic abuse often needing to move out of the area.

Councillor David also questioned the tracking of Houses in Multiple Occupation (HMOs) and their impact on housing stock, asking if landlords were incentivised to offer properties to families rather than HMOs. The Cabinet Member explained that planning regulations limit HMO density to 10% and prevent them from being sandwiched between family homes. Officers noted that tracking HMOs has become more difficult since the cessation of the smaller HMO licensing scheme, although landlords are required to register properties online.

Councillor Collins enquired about liaison with Bath Universities regarding student accommodation and incentives for older people to downsize. The Cabinet Member stated that student accommodation is a planning consideration that could be discussed separately, and that the council has planning rules regarding student accommodation.

Councillor Johnson highlighted the importance of infrastructure for large developments, citing an example in Paulton where promised infrastructure was not delivered. The Cabinet Member agreed with this point.

Aequus Business Plan Refresh

The panel reviewed the refreshed Aequus Strategic Business Plan 2024-2030. Aequus is a wholly-owned company of Bath & North East Somerset Council, established to develop market sale and private rented housing. The updated plan aims to capture longer-term growth opportunities, explore wider public sector partnerships, and better reflect Aequus' role in supporting the council's affordable housing programme.

Councillor Johnson questioned the emphasis on non-affordable housing, stating it did not align with council objectives. An officer explained that a balance is maintained between social and market housing, with some schemes being 100% affordable. Social housing, they noted, must be subsidised by market homes, which are driven by council aims. The Cabinet Member added that Aequus extracts a lower commercial return (4%) compared to normal commercial companies (20%), with these funds needed to subsidise affordable housing.

Councillor Collins asked about risk management. An officer explained that the scale of delivery is ambitious and involves various project types, with a move towards more standard house and apartment designs.

Councillor Leach inquired about the impact of shareholder returns on delivery outcomes. An officer stated there is an element of impact, and the Cabinet Member acknowledged that payments to the shareholder affect unit delivery, but that this pressure lessens as the company scales up.

Councillor David expressed confidence in large projects moving forward, with officers confirming a clear vision for the pipeline and frequent monitoring of development stages.

Councillor Simon asked about the use of windfall sites. The Director explained that Aequus manages around 1,000 assets and conducts regular asset reviews, highlighting the importance of land supply.

Councillor Heijltjes asked if the £1 million financial return to the council was ring-fenced. An officer clarified that the return goes into the council's balance sheet as income and is not ring-fenced.

Budget Report

The panel discussed the draft revenue budgets for 2025/26 and the associated Council Tax proposals. Councillor Andy Wait noted the limited information in the report and stated he would provide feedback at the Corporate Panel. The Executive Director confirmed that a more detailed budget report for the Corporate Panel had been published.

Councillor Simon mentioned that the budget process was reportedly two weeks behind schedule, with a further review scheduled for the following week.

Councillor Heijltjes raised a question about National Insurance costs related to highways and the climate emergency. An officer stated that the council's National Insurance cost is £2.6 million, with the government contributing £1.3 million.

Councillor Johnson questioned the 22% increase in green waste collection costs, given the service's frequent cancellations or delays. The Executive Director explained that the increase is benchmarked and reflects the service's cost, and that the comment on service quality would be taken back.

Councillor Johnson also asked about the likely income from producer responsibility regulations. An officer reported this would be £2.7 million for the 2025/26 financial year.

Councillor Wait inquired about increases in sickness/holiday cover within Waste Services. An officer explained that the overspend on salary is no longer being mitigated.

Councillor Wait also asked about the Corporate Estate reduction. An officer explained that budgets are being centralised to make efficiencies, and that underutilised estate can be released to reduce running costs, citing Lewis House as an example. Land can also be re-used or redeployed.

Councillor Duncan Hounsell mentioned clearance work by 'Saltford for Nature' and noted that BANES only performs basic maintenance, not beautifying parks and green spaces. He questioned if sufficient funds were available for this. The Cabinet Member stated this was important to all ward councillors and hoped it would be addressed.

Councillor David asked about the deterioration of basic play equipment. The Executive Director confirmed that funding would be allocated in the Capital Budget over the next few years.

Councillor Collins requested that benchmarking be included in future papers to aid the panel's consideration and comparison with other authorities. The Executive Director stated that benchmarking discussions occur throughout the year.

Panel Workplan

The panel noted the future workplan, with a suggestion for the Movement Strategy to be included as a future item.