To the Assistant Mayor for Housing and Environment

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REPORT OF DIRECTOR OF BUSINESS SERVICES

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TO THE ASSISTANT MAYOR FOR HOUSING AND ENVIRONMENT

ON 28 AUGUST 2012

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TITLE:Salix Business Plan 2011-16 Update

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RECOMMENDATION:

That the Assistant Mayor for Housing and Environment approves:

1. The revised Business Plan April 2011 – March 2016
2. The 2012/13 Delivery Plan

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EXECUTIVE SUMMARY:

This report provides the Assistant Mayor with the refresh of the Salix business plan for the period April 2011 to March 2016 and the financial and delivery plan for the period 2012/13 for approval.

The financial plan is contained in the report and the delivery plan for 2012/13 is enclosed at appendix 1. The financial plan demonstrates that there are severe financial challenges in future years that are being considered as part of the wider options appraisal work and future delivery models.

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BACKGROUND DOCUMENTS:

(Available for public inspection)

Business Plan 2011-16

Asset Management Strategy 2011-14

Business Support Strategy 2011-2014

Better Places, better life chances 2011-14

Equality and Diversity 2011 -14

Financial Strategy 2011-14

Green Strategy 2011-14

Money Matters 2011-14

Total Salix Strategy 2011-14

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KEY DECISION: YES

DETAILS:

• Operating context
• Key Achievements 2011/12
• Outcome review
• Delivery Plan 2012/13
• Financial Plan 2012/13.

• Confirmation of financial projections
• Developments relating to Welfare Reform
• Progression of PFI
• Implementation of the change programme – Right People, Right Place, Right Time.

• Reduction in housing benefit rates for working age customer who are under occupying their properties. Claimants will only receive housing benefit based on their bedroom needs from April 2013.
• From April 2013 a benefit cap will be introduced for claimants of working age. This will limit benefits to the average family income of £26,000 per year/ £500 per week
• Introduction of Universal Credit from October 2013 to 2017. The introduction of Universal Credit will replace all current benefits with one single benefit paid monthly directly to benefit claimants.

• A financial impact of £1.68 m on Salix Homes in lost rental income
• Additional increased costs due to more recovery action, higher levels of lettings, potential increase in void loss, higher demand for support
• Our customers having to manage on less income, prioritise payments and plan household budgets leading to increased levels of financial hardship
• Higher transaction costs as customers need to make more payments
• Lack of suitable size accommodation to move people to or offer new applicants.

• Setting up the welfare reform steering group to manage and monitor our response to welfare reform
• Detailed customer profiling to identify those customers who will be affected by the changes and using this information to contact these customer directly
• Development and delivery of an under occupancy strategy aimed at contacting all tenants who are under occupying and ensuring they are aware of the changes and are provided support wherever possible
• Development of interventions to help mitigate the impact of the changes. This range from income maximisation and support with budgeting through to re-location where this is feasible.
• Delivery of staff training on the changes so that all staff are trained and can information and advice to customers
• Development of a detailed communications programme
• Recruitment of a financial inclusion officer and a welfare benefits advisor who are able to provide effective advice and support to customers.

• Responding to feedback from the Top 100 Employers survey on leadership by rationalising the levels of management.
• Reviewing the structure of Executive Management Team following the departure of the Director of Finance.
• Introduction of Housing Revenue Account (HRA) self-financing in April 2012.
• Reacting to continued public spending cuts, ensuring the organisation is as efficient as possible.
• A requirement to reflect tenant led self regulation following the abolition of the Audit Commission.
• A reduction of 20% less stock and rental income for Salix Homes following the transfer to Pendleton PFI.
• Decent Homes investment programme to deliver nearly £100 million of improvements over the next 5 years.
• Improving how Salix handle customer enquiries.

• The relaunch and relocation of the First Response Team
• The review and launch of in-hours security and concierge services, and fair and transparent service charges put in place
• Caretaking and low rise cleaning services reviewed and fair and transparent service charges put in place
• The development of the TMO Tripartite agreement
• Secured 40p for every £1 of Salix Homes investment in neighbourhood activities.

• Information communication technology
• Performance management
• Risk management and business assurance
• Governance
• Marketing and communications
• Organisational development.

• The development and implementation of internal procedures to improve the standard and consistency of customer communication
• The production of a number of rent campaigns at Christmas and year end
• The development of an interactive micro-site on green issues
• The development of social networking to improve access to services
• The restructure and recruitment of the ICT Team
• The implementation of competency based performance appraisals for Board members
• The development of performance reporting from Northgate using Business Objects.

• We have ensured we are able to publish information on our workforce profile and equal pay
• We have evidence compliance with the current codes of practice
• We have delivered training to partners and customer groups on changes to legislation
• We have monitored contractor performance in relation to equality and diversity
• We have developed our Equality and Diversity partnership group to cover a wider range of contractors and suppliers
• We have delivered the Disability Protocol training to contractors.

• The maintenance of fit for purpose financial governance and reporting arrangements
• The successful closure, audit and sign off of accounts for 2010/11
• The successful closure of accounts for 2011/12
• Production and approval of annual revenue budgets
• The maintenance of the VFM monitoring framework to record efficiencies and select appropriate reinvestment opportunities
• The maintenance of an accurate and current contracts register
• The co-ordination of all procurement activities
• Supporting the council in the development of the 30 year HRA business plan model
• Work with the council to assess the implications of PFI on the HRA
• Work with the council to assess the implications of self financing on the debt portfolio.

• CESP funding identified for a number of schemes
• Opportunities to bring an investment through the Green Deal have been explored
• We have worked with AGMA to identify collaborative funding opportunities.

• A review of the function and structure of the Income Management Team
• The recruitment of a financial inclusion officer
• Taking responsibility for the recovery of leaseholder service charge arrears
• The submission of a Big Lottery Fund bid and getting through to the second round of the process (to date).

• Communicate with and enable customers to access services
• Continue to broaden customer involvement and increase their influence in service design
• Develop our organisation to put the customer first, take ownership of issues and problem solve through the business intelligence we provide and through which we engender the right culture in our organisation
• Work together and remove silo working, to improve processes and policies and harness technology to engineer a seamless customer journey.

• The development of our role as a co-regulation champion, selling advice, training and support to others
• Supporting the Senate to extend their remit to include monitoring performance on behalf of the Salix Board
• Achieving external accreditation through Investors In People, Customer Service Excellence and Tenant Advisor
• The involvement of customers in procurement exercises
• Working in partnership with a range of agencies to enable all customers to influence services, particularly by developing links with BME customers, LGB customers and transgender customers
• The development of a programme of activities to engage with young people.

1. Be an increasingly efficient organisation
2. Remain a financially viable organisation
3. Develop and grow the business
4. Provide an excellent customer experience
5. Reduce crime and fear of crime
6. Manage sustainable properties and places
7. Be energy efficient and have fewer customers in fuel poverty
8. Have a diverse, committed and empowered workforce.

• Those aged 24 – 44 (80.8% satisfied)
• Those who classified themselves as not heterosexual (76.9% satisfied)
• Those who classified themselves as not Christian (58.3% satisfied).

• The revised Business Plan April 2011 – March 2016
• The 2012/13 Delivery Plan

KEY COUNCIL POLICIES: