Brent Council attempts to address the Strategic Risks ahead and introduces new risk areas

Strategic Risk Areas - red equals highest risk and highest impact (5/5)

Tomorrow's Brent Audit and Standards Advisory Committee (6pm) LINK will be discussing the Strategic Risks Register compiled by the Council.

 

 

The following new risk areas have been added to the Strategic Risk Register:

 

Cost of living crisis

The cost of living crisis caused by rising rates of inflation and fuel/energy costs, may result in more families and households to fall into unemployment and poverty, which may lead to increased level of service demand on the Council and place additional pressure on front-line services.

Recruitment and retention

Failure to recruit and retain sufficient permanent staff to a significant number of posts, including senior managers, leaves services without sufficient and/or sufficiently qualified staff leading to services being impaired and an overreliance on agency/interim staff.

Increased demand from migration and people movement

There is a risk that a sustained increase in migration and movement of
people could result in increased demand on the Council's critical front-line services (including housing, education and looked after children), which may result in service deterioration, financial pressures and also impact on the wider cohesion of the community.

 

NEU Video on the Cost of Living Crisis calling for support for June 18th demonstration

 

The full report is available HERE. It is important for the reader to assess whether the Action Plans adequately address the risks in the various areas. I include two extracts below.

 

The Cost of Living Crisis is clearly important in Brent. The Risk Register states: 

COST OF LIVING CRISIS (A)

 

RISK SUMMARY

 

The cost of living crisis caused by rising rates of inflation, National Insurance, and fuel/energy costs, may result in more families and households to fall into poverty and unemployment, which may lead to increased level of service demand on the Council and place additional pressure on front-line services.

 

RECENT DEVELOPMENTS, PROGESS AND CONCERNS

 

The Brent Resident Support Fund (RSF) is a discretionary support fund available to Brent residents who are in financial difficulties, for example struggling with food, utility bills and other household essentials. For 2021/22, the RSF budget was £3million.

The government announcement of 3 February 2022 regarding Energy Bills Rebate included provision for most properties in council tax bands A to D to receive a £150 rebate payment. It is estimated that the total amount paid could be up to £14.5m at full take-up.

The announcement also made provision for local authorities to create a fuel rebate discretionary scheme to support some properties in bands E to H. The government have provided funding of £1,933,800 allowing the Council to establish a scheme to support bill payers not eligible under the main scheme for properties in bands A to D.

A cross-Council Cost of Living Crisis Group has been set-up to look at the impact of the crisis across all services and to ensure a joined-up approach.

A Food and Fuel Poverty Toolkit has been prepared which contains links and signposts to various organisations to support residents. Staff and Members have been briefed and trained on this and it has been presented at departmental management teams and relevant services.

A Financial Inclusion Dashboard is in place which draws together data from across various datasets, including council tax support and benefits. This is used to identify residents who may need targeted supports (i.e. in arrears). It also provides a strategic oversight for senior management.

 

ACTION PLAN

 

1. Further enhance the Financial Inclusion Dashboard by introducing additional datasets to help identify residents in need of targeted support.
2. To use the Food and Fuel Poverty Toolkit to prepare a leaflet to be sent to all residents signposting them to various organisations that can provide support.
3. To continue to roll-out training regarding the Food and Fuel Poverty Toolkit crisis toolkit to partners and the third-sector.
4. A report will be taken to Cabinet for approval in June 2022, outlining all the measures currently in place and other planned actions to be taken by the Council. The report will also seeks approval for additional funding for RSF for three years from 22/23

The need for truly affordable housing, including Council housing, has been a major theme of this blog. In this section I was looking for an action concerning the issue particularly in the light of the concerns raised by Philip Grant over the Cecil Avenute development. 

 

During the  election campaign candidates at the Housing Hustings were concerned about developers 'getting away' with low levels of truly affordable housing and there were suggestions that the Council should engage its own in-house experts in Viability Assessments, rather than external providers. Developers use Viability Assessments to demonstrate that a development is not financially viable, or does not provide an adequate return if they provide the amount of afforable housing that the Council expects.  There was also support for a separate Housing Scrutiny Committee. These issues are not addressed: 

 

LACK OF SUPPLY OF AFFORDABLE ACCOMMODATION (D)

 

RISK SUMMARY

 

There is a risk that as a result of the limited supply of affordable accommodation, in the Private Rented Sector , settled Temporary Accommodation (TA) and Social Housing, progress made towards increasing the sufficient supply of accommodation to meet the demand from homeless households could be reversed. This could lead to greater reliance on emergency temporary accommodation, which would have impacts on the wellbeing and quality of life for residents, and also provide an additional burden.

 

RECENT DEVELOPMENTS, PROGRESS AND CONCERNS

 

In 2012, Brent had 3,176 homeless households living in TA, which was the largest number in the country. By 2018, this number had reduced to 2,450 and it now stands at 1,584. With progress being made on the New Council Homes programme, we believe we will meet the need for 1-3 bedroom properties. The picture is more limited for families in need of a 4+ bed accommodation, where will believe a significant shortfall will remain.

The recent economic downturn related to the Covid pandemic and the cost of living crisis has resulted in many households facing the risk of homeless. Some of these households are affected by the Overall Benefit Cap, which makes finding alternative private rented accommodation in the borough extra difficult. This means that the families are unable to afford Private Rented Accommodation (at the LHA rate) or settled temporary accommodation, in TA leasing schemes.

The greatest control we can exert on the model is building new Council-owned supply, and encouraging RSLs to build what we need. We can also exert control through social housing re-lets/voids, private rented sector offers, and new build social housing. The Team are also working with the affected families to support them to secure work, and so be exempt from the cap, as well as identifying households who are accruing debt, in order to proactively make contact and offer assistance at an earlier stage, to prevent homelessness.

The Housing Needs Service are working with Notting Hill Genesis HA, who supply TA through the HAL scheme, to procure more property in the North of Brent, where LHA rates are lower.

 

ACTION PLAN

 

1. To continue delivering the NCHP at pace, with a focus on large family homes.
2. To continue to look at additional purchases of street properties that meet specific needs.
3. To continue review and explore options for the building of a new temporary accommodation scheme that would provide an additional 100 units of temporary accommodation.

The highest risk/impact area is the increase in the Dedicated Schools Grant High Needs Block Deficit. (C) This is the funding need for special needs pupils who have an Education, Health and Care Plan (EHCP) which was in deficit by £10.5m in 2020/21.  This has is being addressed by putting in early support to reduce the need for EHCPs, creating more places for such children within the borough and ensuring that costs are collected other local authorities that have children in Brent schools.  In addition to these actions there is a short statement on lobbying central government. An action that could of course be applied to the funding of local government in general.

Ark plan new primary school in Wembley but is it needed?

Ark appears to be about to expand its schools empire in Brent adding a new primary free school at Wembley Ark, Ark Elvin and Ark Franklin Primary.

The new school would be on a site at the corner of Empire Way/Wembley Hill Road and the Royal Route with a form entry of 90 (3 classes in each year group) making a total when it is full of 630 pupils with perhaps a 60 place nursery.

The Ark Somerville Primary School would be on a busy main road which is of concern given the impact of air pollution on children and it will be important to see how much open play space will be available to the pupils.

The most important concern though is whether a new school, and such a large one, is actually required. In the immediate vicinity of the proposed school are Elsley Primary which is currently doubling in size to four forms of entry, Park Lane Primary, Oakington Manor Primary and Wembley Primary.

An important factor is the impact of Brexit and the declining value of the pound in the number of European citizens working in Brent.  There is anecdotal evidence of a reduction in numbers which affects the number of  EU pupils in local schools. Alongside this is the continuing issue of families affected by the benefit cap being forced to move out of London.

Quintain is of course building new housing in the area but this is generally not affordable to local people and unlikely to accommodate families. Brent Council will need to provide robust projections of future demand to justify a new school.

I understand that several of the primary schools that have been expanded recently are not attracting sufficient pupils to fill the new places and that some may apply to reduce their form of entry.  I am awaiting the outcome of an FoI request to see the evidence on unfilled vacancies and waiting lists.

If there is not an overall increase in demand a new school would create a 'churn' of pupil movement as parents move their children between schools. Brent Council is committed to supporting 'parent choice' by running schools with some spare capacity but the downside of this is that pupil mobility can be disruptive to the continuity of learning and undermine pupil progress. Schools with high mobility may find it very hard to meet the target thresholds set by the government for Year 6 children when perhaps only 20% of them attended the schoool in Year 2.

Local public transport is already under strain with pupils from Ark Elvin, Wembley Ark, Michaela, Preston Manor and the Lycee converging at home time and the proposed new primary would be on the same routes although one would hope that they lived within walking distance of the school.

Ark's announcement is below.

In September 2014 Ark submitted a free school application to the Department for Education to open a new primary academy in Wembley to help meet the growing demand for school places.

Following the approval of the application, Ark is now consulting on the proposal to open Ark Somerville Primary Academy, serving 2-11 year olds in Brent. It is proposed that Ark Somerville would open in September 2019 and admit 90 Reception age children each year until it reached its full capacity of 630 in September 2025; there is the potential that the school’s 60 FTE nursery might also open at the same time.

Ark Somerville will be located on the corner of Royal Route and Empire Way, next to the London Designer Outlet and will be a newly constructed building completed ready for September 2019 opening. The building is being designed and built by Bowmer and Kirkland, who will lead on a planning consultation later in the summer.

Ark Somerville Primary will be non-denominational, non-selective and mixed, serving local children. The admissions criteria will prioritise those living closest to the school. The school will have particularly strong links with Ark Academy (an all-through school), Ark Elvin Academy (a secondary school) and Ark Franklin Primary, all located in Brent. Ark Somerville will also become part of the wider Brent family of schools.

Please let us know what you think

If you would like to hear more about the schools, please join us at one of our drop-in events which will be held at Ark Academy, Bridge Rd, Wembley, HA9 9JP

There will be two events held on 13th July at:

•  9:30 - 11:00
•  17:30 - 19:00

The consultation period will run from 29 June to 15 September 2017.
If you have any questions or comments, please do get in touch through our feedback form on Somerville S10 Consultation Feedback Form

The housing emergency that will soon devastate Brent families

The entrance to a Chalkhill block of flats

 "They are making the poor, poorer," was the reaction of one parent when Chalkhill Primary School held a briefing about the Coalition's welfare reforms.

The school, recognising that many of its families would be hit in the near future had arranged for Reed in Partnership and Brent Housing to explain what was happening and 50 or so parents attended the meeting on Friday morning.

As the parents realised,that their lives were about to be turned upside down, the anxiety in the room deepened.

Brent Housing admitted there was little good news but emphasised the need for planning ahead of the main impact of the changes which will hit in April 2013.  They offered advice on how to bid for properties and transfers for council and housing association tenants (Call 020 8937 5211) and help for those renting in the private sector (020 8937 5211/4441/2369).

They suggested that the reforms might mean moving to Barnet or Harrow or further afield for some tenants. They were able to offer to help negotiate new rents with private landlords when the London Housing Allowance (LHA) no longer covered the full rent, perhaps with a 9 month protection if the rent was increased pending finding new accommodation.

For many, the combination of the reduced Housing Benefit,. the overall income cap, changes in the hours needing to be worked for Working Tax credit, and the likely charging of at least 20% council tax to all but the most vulnerable,  will bring about a drastic reduction in income The red columns add up to the £500 weekly limit):
 

Household size	Total Income (IS/JSA, CTC, CB –approx)	Max HB from April 2013	LHA rate South Brent	LHA rate North Brent
2  adults, 2 children	£260.70	£239.30	£290 (2 bed rate)	£219.23 (2 bed rate)
2 adults, 3 children	£332.10	£167.90	£340 (3 bed rate)	£288.46 (3 bed rate)
2 adults, 4 children	£403.50	£96.50	£400 (4 bed rate)	£346.15 (4 bed rate)
2 adults, 5 children	£474.90	£25.10	£400	£400
2 adults,  6 children	£546.30	£0	£400	£400

It is clear that many families will not have enough to spend on food, heating and necessities after rent has been paid and thus will have no option but to move out of London unless they can find work.

This was where Reed In Partnership came in with its offer to help 'progression into work' , emphasising that it was not 'forcing people into work'. They offered:

• Individual appointments to make 'better off' calculations comparing income from work with income from benefits. 
• Opportunities to go on courses, develop English language skills, and help looking for long-term sustainable jobs.
• Step by step help with housing, childcare, budgeting, connection with appropriate programme
• Help into volunteer activities that would contribute to a CV
• Help with interview skills and appropriate clothing
• Help with public transport , providing travel cards while waiting for first pay packet

A mother who had received help from the programme spontaneously stood and said how much it had helped her. She said that they had helped her buy clothes for her job interview and that now she was employed she was better off than when she was on benefit and less socially isolated at home.

Reed In Partnership contacts: Marilyn Grundy 07534 189 557
Wembley Works, Forum House, Lakeside Way, HA9 0BU
Sessions: May 3, 17, 31 9am-noon

I am sceptical that with the numbers of people involved and with current high levels of unemployment in Brent how many people will be able to benefit but it clearly offered some a glimmer of hope. However for some mothers with very young children at home it does not seem to be an option. For many moving to 'cheaper' areas, probably with even fewer job opportunities (that's one reason why property is cheap after all) will be the only alternative to penury.  While Reed claims it isn't doing the forcing it is clear that the policy is doing just that and agencies such as Reed deliver that policy on behalf of the government.

Overall, the impact of all this must be to increase the number of children living in poverty with inevitable consequences for health and educational progress. If families are forced to move out of London children's schooling will be disrupted and nuclear families will be separated from support from their extended families and communities, finding themselves isolated and possibly facing racism and prejudice from the receiving communities.

According to Saturday's Guardian, back in 1994, Housing Minister Grant Shapps stood in what they call the London ward that represented Chalkhill, then a notorious concrete block estate.  Shapps boasts, "My brilliant slogan was 'Vote for me on Thursday and we'll start knocking your house down on Friday', and I came within 103 votes of taking a safe Labour ward".

I would like Shapps to come back to the Chalkhill Estate and  talk to people whose lives he and his Coalition colleagues are about to wreck.
 
It appears to me that this government is like the military, making war and killing people in a far away country. by clicking on a computer screen. They are as remote from the lives of ordinary people in places like Chalkhill and the impact these 'reforms' will have on their lives, as those military personnel were from the lives of ordinary people in Iraq. I suppose the question is are they oblivious to the consequences, or is that what they want?

For more on these issues go to this article LINK

The Chalkhill meeting showed the importance of outreach work by the Council at a venue where they can meet families affected by the welfare 'reforms' and rise awareness of the issues. I hope other schools will hold similar meetings.

From Shelter

Have you say on how Brent Council allocates social housing to those on the waiting list

King's Drive Estate, Wembley this morning

Brent Council is consulting on how social housing is allocated to people on the housing waiting list. This is what they say:

Residents are being invited to have their say on how the council allocates social housing in Brent.

The council is launching a consultation that asks people to give their views on the criteria for distributing the limited number of social houses currently available.

Brent is proposing changes to ensure that social housing is shared out fairly to people in need. These changes include a proposal to give residents in temporary accommodation priority for social housing that becomes available on the estate where they are living, so that they don't have to move neighbourhoods. Another change looks at giving priority to homeless families living in temporary accommodation on an estate that is being regenerated to move into social housing within the same area.

The full list of proposed changes is available online here. The consultation will end on 22 January 2019, ahead of the Cabinet decision's in March with the agreed changes then set to begin in April.

Cllr Eleanor Southwood, Cabinet Member for Housing and Welfare Reform, said: "It's really important that social housing is distributed fairly given the chronic shortage of genuinely affordable homes in Brent. We are asking for as many views as possible. These changes impact everyone on the waiting list.

"We do have ambitious plans to build more homes in Brent, but these changes work with the limited supply of homes that we have available to us right now."

Brent last reviewed how it allocated social housing in November 2014 and made changes to its scheme in January 2015.

Detailed proposals are not available until you actually start the process of filling in the on-line consultation AVAILABLE HERE  so I have reproduced them below:

To see all the options click on 'read more' below.

What do you know about 'Investing 4 Brent'?

It sounds like a credit union but it is in fact a ‘Wholly Owned Investment Company’ (WOC) approved by Brent Cabinet at its November meeting and which had its first meeting just before Christmas.

The Cabinet appointed Cllr George Crane (a former member of the Executive and lead for Regeneration and Major Projects), Phil Porter (Strategic Director of Wellbeing) and Peter Gadson ( Director of Policy, Partnerships and Performance) as directors and former Chief Executive of Ealing Council, Martin Smith, as Chair.

The Resources and Public Realm Scrutiny Committee are due to discuss the Council’s Capital Programme and Investment Programme on January 10^th.  This includes an accout  of the progress of various capital programmes across Brent, including major developemnts and the school expansion prgramme,  and ‘Investing 4 Brent’ is mentioned in the umbrella report only in passing.  However the Cabinet report on the Wholly Owned Investment Company LINK is included in the subsidiary documents and members may think it merits some scrutiny and discussion as a new departure for Brent Council which raises potential issues of democratic accountability beyond Cabinet oversight.

The Report summarises the Council’s intention:

The proposal is for Brent Council to form a Company under its General Fund powers, which will be 100% owned by the Council. Its initial principal aim will be to assist in the delivery of the Council’s ambitious regeneration plans and housing development objectives, but it is envisaged that this aim will be developed over time. 


The rationale for using a WOC, as opposed to developing direct through the General Fund, includes:
.                           Isolation of some financial risks, which would be borne in the first instance by the Company rather than the Council; 

.                          More focused management of these complex risks, such as cash flow, tax, land development and market appraisals, many of which are not typical of most council services; 

.                          Specifically within the initial focus on housing, absolute clarity that any housing properties delivered will not be council HRA properties and thus will not impact on the HRA borrowing cap. Right to Buy (RTB) does not apply to homes developed through a WOC, as the Company forms a distinct legal entity from the Council. 

.                          Strong and onerous personal obligations placed on the Directors of the company, through the Companies Act, to ensure that the activity receives the appropriate management focus; 

.                           Flexibility to act more commercially and at greater speed than the council can, which is essential in acquiring property and striking development deals and hence emphasises why governance and control are so important; and 

.                          Flexibility to develop the company, once established, into another structure, if so required, allowing for example the development of other companies within the Brent umbrella or sharing of the equity in the company with another partner if that becomes desirable. 

It is not intended that the WOC would have a high profile identity separate from the Council, and that, operationally, it would be a “light” organisation with many activities, particularly development, undertaken via consultancy support, contracts and management agreements or via secondment of Council staff. It is expected that by setting up and running the Company in this way the impact on staffing capacity would be low but equally would improve efficiency and maintain employment whilst providing a motivating opportunity for staff to develop new skills. Some direct appointments might be necessary in relation to, for example, management of core functions such as Board papers, audit, insurance, accounting and tax. 


The conclusion of this report is that the WOC has significant potential to support the delivery of housing, infrastructure and regeneration strategies directly (i.e. through site development) and indirectly (providing the catalyst for further private sector investment or maintaining the momentum of change). For example, the potential for the Council to be able to directly deliver housing on land that it owns is of clear benefit to the wider regeneration of Brent as it will provide an alternative route to private sector delivery which has been constrained by prevailing economic conditions. 

Brent Council is currently in the process of bringing the Brent Housing Partnership back ‘in house’ and although a totally different enterprise ‘Investing 4 Brent’ appears to be a form of out-sourcing with its own risks attached.  6.20 indicates that any financial shortfall could be made up by raising rents or selling off property:

.        6.13.  Initial modelling has presented a sustainable business plan for the company provided that a number of key targets are met, the key ones being:
.        Purchasing a portfolio of properties that generates sufficient income from letting to tenants at sub market rents to cover the costs of operating the company and interest on debt owed to Brent 

.        Properties are managed in such a way as the costs of operation are optimised and the revenues lost through void and bad debts are minimised 

.        6.14.  The premise of this company is that it has been established to provide quality housing options at sub market rents. Key to the sustainability of this company is its ability to operational surpluses. However, the ability to make significant surpluses is restricted through sub market rental income. Section 6 of the business plan gives more detail on the critical and other variables that the directors of the company will need to manage to ensure a sustainable, successful and profitable company. 

.        6.15.  Providing that these key targets are met, the financial profile of the company is that it becomes profitable during the second year, and retains surpluses from which to operate until end of the 30 year business plan period. 

.        6.16.  It should also be noted that incorporation of a company exposes the operation to liability for corporation tax and VAT. Payment of these taxes has been included in the financial modelling exercise. 

.        6.17.  Given the target variables as defined above, the company will require a cash flow / working capital facility of up to £1m during the first 4 years of operation. The need for a working capital facility arises from the time it takes from the acquisition of the property to first let. The financial profile for the company is for the company to make a loss in the first year of operation, turn from profit to loss during the second year and to make accrued profits from year 4 onwards. 

.        6.18.  For the avoidance of doubt, this is a loss within the company. As it forms part of the council’s overall group it is not a loss to the council; indeed, the company will be a part of the council’s plans to reduce its overall costs in managing homelessness. By way of analogy, describing the company as making a loss in its early operation is the same as describing any operational budget as a ‘loss’ which would be meaningless for practical purposes. However, the early loss in the company has a specific meaning within the Companies Act, which is why it is necessary to demonstrate that the company will over time be profitable. 

.        6.19.  From year 4 onwards the company is self-sustaining, with losses made in later years being offset by further profits made in the earlier years. This is detailed in the appended company business case. 
Meeting
.        6.20.  There are risks of setting up a company, the primary one being that due to unforeseen market changes it may become insolvent. This risk should be mitigated by suitable monitoring arrangements as set out above. It is important that the company maintain the flexibility to set rents and if necessary dispose of properties to meet any shortfalls. The company should not be authorised to borrow or incur long-term liabilities without prior Council approval. 

.        6.21.  To support the viability of the company and protect the interests of the company a commercial arm will operate alongside the PRS affordable housing. This commercial element will permit greater opportunity to deliver sub market and commercial housing to create a strong and sustainable business and offer accessible housing products to key workers amongst others.