Showing posts with label Social Housing Regulator. Show all posts
Showing posts with label Social Housing Regulator. Show all posts

Monday, 22 September 2025

The next Brent Council administration will inherit a perilous financial situation

 

 Cllr Jumbo Chan at Brent Full Council on September 15th 2025

 Cllr Jumbo Chan, who has quietly and assiduously been doing a very competent job as vice chair of the Audit and Standards Advisory Committee, took just 2 and a half minutes at Full Council to inform his fellow councillors of the upcoming serious financial issues facing Brent Council. There was no reaction or questions from his colleagues. Cllr Chan is one of the recently deselected councillors.

His Committee meets again on Thursday and will consider the Interim Auditor's Annual Report LINK , a report on Council's work on actions following the Social Housing Regulator's finding of serious failings in Brent Housing Management LINK, and the Council's Risk Register.

It is clear that whoever forms the next adminstration after the May 2026 local elections will face a very rocky, if not perilous ride.

 


 The biggest impact and most likely risks include the number of people needing homeless accommodation, the High Needs SEND grant deficit, financial resilience (including the Housing Revenue Account following the repairs needed in the light of the Social Housing Regulator's findings) and a decline in Council reserves. 

The Auditor's report, despite the bland language, suggests that without further cuts and revenue raising the Council might have to  apply for additional emergency government funding (Exceptiona Financial Support) at high interest rates.

AUDITOR'S REPORT 

Here are some of the key points (my highlighting in bold):

Background 

The Council faced continued financial pressures in 2024-25, with a £15.5 million overspend driven largely by rising temporary accommodation costs. While reserves were used to balance the General Fund, the situation remains challenging. Saving plans delivered targeted £8 million in savings. A balanced budget of £431.4 million is set for 2025-26, including an additional £15 million for homelessness, which will cover current demand based upon 2024-25 numbers. However, homelessness pressures are expected to grow, adding further strain. The Dedicated Schools Grant (DSG) and Housing Revenue Account (HRA) also face financial pressure, with deficits and housing regulatory concerns highlighting the need for a robust, long-term financial recovery plan.

 

Key Recommendation 1

The Council must urgently take additional difficult decisions to ensure that a realistic budget can be set for next year and in the medium-term, so this can be delivered without the need to further draw on reserves nor Exceptional Financial Support (EFS) from central government 

 

 

The funding gap 

 

The difference between any council’s annual income and expenditure is the ‘funding gap’. The budget process aims to close this gap by identifying expenditure savings, additional income or using reserves to provide a balanced position. Any increase at the Council in demand or costs, higher than the growth forecast in the Medium Term Financial Strategy (MTFS), will require more savings or additional income to offset.

 

The MTFS, dated February 2025, anticipates a cumulative budget gap of £28 million by 31 March 2029, highlighting increasing financial pressures. Chart 1 sets out the savings and growth delivered to date and projected over a six- year period.

 

• Forecast growth for 2026-27 to 2028-29 in the MTFS is reduced to approximately £26 million per year, which is around 50% lower than the £53.3m million growth budgeted for in 2025-26.

• Forecast savings for 2026-27 to 2028-29 are only marginally higher than those required in 2024-25 and 2025-26.

 

This indicates considerable pressure in the current MTFS with limited scope to absorb unforeseen cost pressures.

 

Current spending levels across the Council are deemed unsustainable and pose a risk to the Council's financial sustainability. Without additional income, additional savings (which links to Key Recommendation 2), or service cuts, the Council is at risk of delivering overspends which cannot be supported by remaining reserves.

 

Impact: If the Council fails to manage demand for services and deliver against budgets the reserves levels will threaten its financial sustainability. Exceptional Financial Support (EFS) may be necessary for 2027-28, which would entail borrowing at a premium to cover revenue costs.

 

Key Recommendation 2: It is critical that savings through the Embrace Change Transformation Programme are quantified and integrated into the Medium-Term Financial Strategy (MTFS) providing a pipeline of sufficient recurrent savings and income generation schemes supported by robust business cases through collaboration and business transformation.

 

 

Areas for Improvement - disposal of property assets

 

Using the property strategy to identify assets that are not operational and not required for service delivery could provide the Council with a pipeline of potential capital receipts which could support the financing of the capital programme. This could reduce long-term borrowing and mitigate additional financing costs. Any plans for asset disposal should be built into the Medium-Term Financial Strategy with realistic timescales, to mitigate potential Exceptional Financial Support needs in 2027-28

 

Improvement Recommendation 1

 

Area for improvement: Using the property strategy to make best use of assets, including the identification of non-operational assets.

 

 

Area for improvement: Strengthening the medium-term financial strategy to reflect and mitigate risks from the Direct Schools grant (DSG) and Housing Revenue Accout) HRA balances.

 

The statutory override on Dedicated Schools Grant (DSG) deficits is extended to 2027-28, but the Council’s £13.6 million cumulative deficit remains unresolved, posing a material risk to the MTFS beyond the override period. Alongside pressures in the Housing Revenue Account (HRA), where compliance risks and rising costs threaten long-term sustainability, these issues require urgent financial planning and reserve management.

 

Evidence: Many councils are reporting significant deficits in their DSG accounts due to rising demand for SEND services, especially Education, Health, and Care Plans (EHCPs).

 

Management has actively managed the cumulative deficit DSG position from a high of £15.9 million in 2021-22 to £13.6 million at 31 March 2025. It is a strong achievement to have reduced the cumulative deficit and curtailed significant increases, with £1 million received from the Department for Education to mitigate in- year overspends, helping to maintain the deficit and prevent further growth. The Council's DSG Deficit Management Plan has been updated to cover up to and including 2027-28, in line with the extension to the statutory override, by which time the forecast DSG cumulative deficit could be £20.3 million mitigated or £31.3m unmitigated. Uncertainty remains around how the DSG deficit will be managed if the statutory override is not extended beyond 31 March 2028, and this is not built into the MTFS.

 

Meanwhile, the HRA shows a provisional £2.1 million surplus for 2024-25, but long-term sustainability is threatened by housing stock refurbishment costs and debt.

 

The HRA faces significant risk, indicated by the Council's self-referral to the Regulator of Social Housing which resulted in a “C3 – significant improvement needed” grading for failing to meet the Safety and Quality Standard in relation to accuracy and completion of fire safety data and housing repairs, highlighting compliance risks and potential cost increases.

Continuous monitoring and assessment are necessary as the Council develops a recovery plan which needs to be funded by the HRA reserve.

 

BRENT HOUSING MANAGEMENT 


The Brent Housing Revenue Account (HRA) had an underspend of £2m in financial year 2023-24 but will be under strain as a result of the works needed to satisfy the Social Housing Regulator and to ensure tenants and leaseholders safety, which is the main consideration.

 

The Action Plan on the issues raised by the Regulator was due early this summer and delayed until September the but still not published. The report before the Audit Committee threfore does not contained a costed programme to ensure compliance and we don't yet know its impact on repairs and rents.

 

Extracts from the report:  [My coments in square brackets]

 

The Health and Safety Specialist have been contracted to support ongoing improvement work, providing additional objective and independent oversight, as well building safety expertise.

 

Caldiston Ltd have carried out an independent forensic audit across all key compliance workstreams (including fire, gas, electrical, water, asbestos and decent homes requirements) which was completed in August 2025. The audit involved desktop reviews, staff interviews and validation of data from multiple systems in use by the service, including True Compliance, NEC, and LifeSpan. [Will audit and recommendations be made public?]

 

The audit aligned with officers' concerns, validating the referral to the regulator confirming that there were significant systemic issues, particularly in data management, governance, and policy implementation. The overall outcome of the audit was that the housing management service has inadequate assurance in relation to managing building safety and compliance.

 

Key recommendations from the audit include developing a comprehensivecompliance framework, resolving data integrity issues, closing overdue fire risk assessment actions, establishing central registers for smoke and CO detectors,and providing staff training on compliance processes. It is also recommended to implement dashboards for real-time KPI monitoring and align the Strategic Risk Register with actual risks.

 

The findings from the audit have highlighted and clarified several areas that the service had already identified as needing focus as well as some additional key learning. These findings will now feed into the development of a robust action plan for improvement. [Publication  when?] This action plan will also include root cause analysis (as recommended by The Regulator), to ensure permanent solutions are in place to prevent similar issues arising in the future and will form a key part of the agenda and monitoring for the relevant project board under the newly established Housing and Tenant Improvement Programme. 

 

Ongoing improvement work

 

Whilst the reflective audit work is vital for lesson learning and effectively mapping robust and long-term improvements to our management of building safety, it has been important to us as a service to ensure we are driving forward rapid improvements on the ground to strengthen oversight quickly and provide re-assurance for our residents
 

The Compliance Team have been onboarding additional contractors to expedite the completion of works as a consequence of Fire Risk Assessments, and as of 1 September it is confirmed that all outstanding high-risk fire actions in high-rise blocks have been satisfactorily addressed; either closed with evidence, completed and closed with evidence or work booked. [Figures for each category?]

The rebuild of True Compliance and the NEC asset register is underway [Expected completion date?], and additional governance has also been implemented around the management of data, in particular restricting property creation access which provides a more controlled approach to new properties being added to the system and feeding into compliance workstreams accurately.

 

The compliance team has been progressing with recruitment. A Compliance and Contract Manager, a dedicated electrical manager, a Quality and Delivery Manager and an interim Contract Officer all started in September. Two permanent Contract Officers are being shortlisted currently, all with a focus on compliance and safety.

 

Furthermore, the Housing & Tenant Satisfaction Improvement Board met for its initial meeting in September. [Please publish Minutes for transparency and accountability]


This Board, chaired by the Chief Executive, will oversee and drive initiatives aimed at improving the quality of housing services and increasing tenant satisfaction.

 

The Board will provide governance and oversight by monitoring the progress of improvement initiatives and ensuring compliance with housing standards. [Will results be pubished?]

 

Significant progress has been made in addressing the data issues highlighted in the audit report. Our priority has been to validate the ownership and the council’s compliance responsibilities of all properties on our Housing Database, NEC. This work is essential to build confidence in our data and provide a reliable foundation for reporting.

 

We are currently in the process of systematically reviewing each compliance stream, starting with Gas. This will confirm the properties that fall in or out of scope, and importantly, for what reason. Whilst the audit highlighted that confidence in the reporting number is low, we are using these figures as a baseline so that improvements can be clearly appreciated as our validation work progresses. This will result in the reported asset numbers changing as properties are validated and confirmed in work streams, and percentages fluctuating because of this.

 

This data correction work is not limited only to the properties we report on to the Regulator (i.e. council owned homes) but has been expanded to all residents in our properties e.g. leaseholders, i4B and FWH tenants etc. This ensures a consistent, council-wide approach that strengthens both safety andassurance moving forward.

 

A section of the report deals with financial considerations but not in detail:

 

Financial Considerations

 

 Like other local authorities, Brent is facing significant financial pressures and is continuously needing to look for efficiencies to address budget challenges. Some of the main challenges that could affect the long-term viability of the HRA Business Plan along with rent levels are major works and repairs.[How, increased rents and reduced works and repairs as in Kensington and Chelsea?]

 

As the Council adds more stock to its portfolio and complexities of new additional requirements to building standards are increasing, such as fire safety works and decarbonisation, the cost of major works are rising. At the moment, there is insufficient government subsidy available to address these changes.

 
 

The Asset Management Strategy and investment plans must be approached cautiously and allow for flexibility to scale back on schemes where required. Careful budget monitoring and financial planning are crucial. With a current 5.75% loan rate for the HRA, £1m in borrowing costs the HRA circa £28k per annum in interest costs.

 

The specialists that have been appointed to assist with the recovery of the compliance breaches, are currently undertaking an initial assessment of the situation with the intention of developing a recovery programme. [Cost of specialists?[

 

Upon completion of the initial assessment, a paper will be presented setting out the anticipated costs and financial implications. For comparative purposes, a registered provider with 21,000 homes that were in a similar situation, spent £2.3m on their recovery programme. [Brent Housing Management manages approximately 8,000 council homes, 4,000 leaseholds, and 31 Gypsy and Traveller pitches]

  

It should be noted that whilst operating under a regulatory notice, access to grant funding for housing developments may be reduced or ceased, until the council can evidence a position of compliance.

 

 

 

 

 

Sunday, 21 September 2025

LETTER: We await Brent Council's strategy to inform tenants & leaseholders of their Improvement Plan following Social Housing Regulator C3 judgement

 Dear Editor,

Further to my letter of September 10th LINK.

 

As of the 1st September 2025, the council claim that all outstanding fire risk action in all of their high rises has been addressed, after they were self-referred to the regulator by Brent Council.

 

The council claim they are making good progress towards meeting all the safety compliance standards identified by the regulator and are working on an Improvement Plan to rectify all the compliance issues.

 

They also claim they have been keeping tenants and leaseholders fully informed about the progress they are making with the plan, but I have not seen any evidence so far that supports their claim.

 

However, the council report that they have set up a multi-channel engagement strategy to communicate with residents over their response to the regulator’s judgement.  One of the key components of the strategy will give us an update on the new repairs contract, as all the costs of meeting the compliance standards are coming from the Housing Revenue Account (HRA) budget which includes repairs.

 

I assume this new strategy replaces the Tenants and Resident Engagement strategy that was implemented in 2024.

 

Cllr. Donnelly-Jackson is working on an E-newsletter in which she will provide an update of all the progress the council have made since their self-referral to the regulator at the end of April 2025.

 

As for how much this will cost, the council have not worked it out yet, but it will be at least a million but probably a lot more.   The council also report that they are facing ever increasing costs of Major Works, which is likely to affect leaseholders who have to pay a share of the costs.

 

John

 

(Name and address supplied)

Wednesday, 10 September 2025

LETTER: Brent Council's response to Social Housing Regulator after C3 judgment way behind schedule. What's the hold up?

 


Dear Editor,

 

Brent Council told us they would keep residents up to date regarding their response to the Social Housing Regulator by providing updates through their two scrutiny committee meetings. The regulator graded the council at C3 which means the council has serious failings in the delivery of consumer standards and significant improvement is needed. LINK

 

However, the Council have not published anything in either scrutiny committee but instead announced that they will give us an update at the 19th November Community and Wellbeing Scrutiny meeting. 

 

At the Audit  and Standards Committee meeting on 16th June 2025, several councillors suggested that the council needed to restore the Housing Scrutiny Committee. The council replied there was no need as housing was already covered in their two scrutiny committees. LINK

 

But with nothing published regarding the council’s response to the regulator, how will residents ever find out if their homes are safe?

 

I thought the response to the regulator might be discussed at next week's Full Council meeting, but it seems no one is interested in this very important issue that affects the lives of everyone living in a council home which currently stands at 8400 tenants and 4000 leaseholders.

 

At the end of May the Council reported that they would take 6 weeks to carry out the housing repairs audit but then extended it to 8 weeks.  They were due to discuss it at Monday’s cabinet meeting The Council will now publish an update on the performance of their housing services on the 3rd October in papers tabled for the October 13th Cabinet when they will also publish their Action Plan which responds to the regulator. Previously the Council reported they had major concerns with the Wates contracts that were only given an extension back in April of this year and I expect it will be highlighted in the report.

 

Obviously, there were several housing delivery failures identified by the regulator, so all these reports are likely to affect service delivery, especially on repairs for several years to come.

 

The Council have not explained why it is taking so long to publish anything The audit should have been ready before the end of July.

 

I can only speculate that the council have uncovered so many issues, that they are finding it difficult to cover everything before they give us the full picture.

 

Best wishes

 

John

 


Saturday, 28 June 2025

Tenants seek further information on Brent Council's follow-up to council housing management failures


 

Wembley Matters has recently pubished guests posts by Brent Council tenants of the St Raphael's and South Kilburn Estates  LINK as well as the findings of the Regulator of Social Housing on brent Council's serious failings in housing management.

Asif Zamir of St Raphael's wrote to Spencer Randolph, Brent Director of Housing about the issues. His reply is below along with Asif's response.

 

Dear Asif Zamir,

 

Thank you for taking the time to write on behalf of the residents of St Raphael’s Estate and sharing your concerns regarding the condition and safety of your homes on the estate. I want to begin by acknowledging the distress that the recent findings from the Regulator of Social Housing (RSH) judgment, have understandably caused. Please know that we take these matters extremely seriously, and yours and all of our tenants safety and well-being remain our highest priority.

 

When we identified inconsistencies in our safety data earlier this year, we acted swiftly and responsibly by referring ourselves to the RSH. This was not a decision taken lightly, but we believed it was the right and transparent course of action to begin addressing the issues at hand with the seriousness they deserve.

 

Since then, we have taken a number of urgent steps. We appointed an external health and safety consultancy with experience in supporting organisations in similar situations. They have engaged directly with the RSH and are supporting us in making rapid and lasting improvements. Their work includes helping us to verify and update our compliance data and to ensure all necessary safety checks are clearly recorded and acted upon.

 

We have also commissioned an audit of our systems and data, due to conclude in mid-July. This review will identify the root causes of the failings and inform a detailed recovery plan, underpinned by clear timelines and actions to ensure accountability.

 

In the meantime, we are reviewing all compliance data and building safety actions using a risk-based approach, prioritising high-risk issues. To help us move at pace, we are increasing capacity in our teams, including recruiting additional officers and contractors dedicated to this work.

 

We are also taking visible action across the Borough and on St. Raphael’s Estate. Over the coming weeks, residents will see more surveyors and contractors on estates as we carry out:

 

A new round of Stock Condition Surveys to update our understanding of the condition of every home

Fire Risk Assessments for all blocks of flats on estates

Pre and post-inspections to make sure building safety actions are completed to a high standard

We will communicate clearly and in advance about any visits to our tenants homes or buildings, and we are committed to improving how we engage with you going forward.

 

Finally, I want to reiterate that Brent Council is fully committed to learning from these failings and to restoring your confidence in the safety and quality of your homes. We know that words alone are not enough, you deserve to see real, sustained improvements, and we are determined to deliver them.

 

Thank you again for sharing your concerns.

 

Yours sincerely,

 

Spencer Randolph

Director – Housing Services

 

 

 

Dear Spencer Randolph,

 

Thank you for your prompt response to my letter and for acknowledging the concerns of St. Raphael's Estate residents following the Regulator of Social Housing (RSH) findings. We appreciate your transparency in referring Brent Council to the RSH, and we understand that steps are being taken to address the issues.

 

While we acknowledge the measures you've outlined, including the appointment of an external consultancy, the audit of systems, and increased capacity within your teams, the residents of St. Raphael's Estate require reassurance and immediate, tangible results to ensure their safety.

 

The recent fire on St. Raphael's Estate in May, which tragically led to the tragic loss of life of our neighbours, has significantly heightened anxieties among residents. This incident demands an urgent and thorough investigation into why the building experienced accelerated combustion and further to this why the fire was not contained and spread to the ajoining property.  We need clear answers regarding potential concerns with insulation, cladding, or the overall build quality of the affected building and others on the estate. Furthermore, we are deeply concerned about a potential correlation between this tragic incident and the previously identified lack of safety data from Brent Council.

 

While the planned surveys and risk assessments are a welcome step, residents need to see these actions translated into fast results. The fear of another incident is very real, and waiting for audits to conclude in mid-July and for the implementation of recovery plans does not alleviate the immediate anxieties.

 

We urge Brent Council to:

 

Prioritise the investigation into the St. Raphael's Estate fire, providing residents with immediate updates on preliminary findings regarding the cause of accelerated combustion and any links to building materials or construction.

 

Share a clear and accelerated timeline for addressing the most critical safety issues identified by the RSH and through your ongoing reviews, particularly those related to fire safety.

 

Demonstrate visible and proactive measures on the estate now, beyond just surveys, to address any immediate high-risk concerns.

 

Establish a direct and ongoing communication channel with residents to provide transparent updates on progress and address specific concerns arising from the fire and the RSH findings.

 

We understand that systemic changes take time, but the safety and peace of mind of St. Raphael's Estate as well as residents from wider Brent cannot wait. We look forward to seeing swift and decisive action that translates your commitment into demonstrable improvements in the safety and quality of our homes.

 

Yours sincerely,

 

Asif Zamir

 


 An old map of the original estate

 

Meanwhile Pete Firmin, a tenant on the South Kilburn Estate,  has submitted a Freedom of Information request on the remit and makeup of the housing Advisory Board. LINK

  

Dear Brent Borough Council,
 

I understand a Housing Advisory Board has been set up. Can you please tell me:

1) Its remit.
2) Its composition - who is on the board and their qualification for doing so.
3) If there are residents on this board, how they were recruited and what qualifications they were required to have to be on the board.
4) All correspondence relating both to the establishment of this board and the recruitment of its members.