The Cabinet Member Signing meeting was scheduled to discuss a significant revenue budget virement from the Housing Revenue Account (HRA) reserves to manage housing disrepair cases and fund electrical inspections. Other key items included the appointment of a representative to the Seven Sisters Market Partnership Advisory Group and the appointment of external auditors for Homes for Haringey.

Approval of Revenue Budget Virement for Housing Disrepair and Electrical Inspections

A substantial revenue budget virement of £6.9 million was scheduled for discussion, to be drawn from the Housing Revenue Account (HRA) reserves. This funding is intended to address the increasing costs associated with managing housing disrepair cases and to cover the expenses of an Electrical Inspection & Condition Report (EICR) programme.

The report indicated a need for £6.851 million to manage legal disrepair cases and fund the EICR inspection programme. This includes £2 million for appointing contractors to handle historic disrepair cases, £2.4 million for the costs of external law firms, £700,000 for compensation payments to tenants, and £1.1 million for tenant and lessee legal costs. Additionally, £651,000 is required for the routine re-inspections of the EICR programme in 2024/25.

The report recommended approving a virement of £2.8 million from the HRA reserves for legal services related to housing disrepair and the appointment of four contractors. A further virement of £0.7 million from the HRA reserves was recommended to cover the costs of EICRs for the Council's housing portfolio in 2024/25. The report highlighted that the Council has over 1,000 disrepair claims, with a significant backlog due to insufficient capacity within the responsive repairs service. It also noted the regulatory responsibility to conduct EICRs every five years.

The report considered alternative options, including doing nothing, which was deemed not feasible due to the risk of legal judgments against the Council and potential penalties for non-compliance. Another option explored was identifying savings or stopping other housing-related works, with £3.4 million of the required costs to be funded by savings from the Housing Operations & Building Safety revenue budget. Insourcing was also considered, with capacity being developed, but the need for external solicitors in the interim was acknowledged.

Nomination to the Seven Sisters Market Partnership Advisory Group

The meeting was scheduled to consider the nomination of a representative to the Seven Sisters Market Partnership Advisory Group (SSMPAG). This group was established by Transport for London (TfL) and their commercial property arm, Places for London (PfL), to advise on the long-term future of the Seven Sisters Market, which has been closed since March 2020.

The SSMPAG is a consultative and advisory body tasked with advising PfL on proposals for a long leasehold interest in the market site, aiming for development that provides economic and social benefits to the local community, with a particular focus on the Latin American Community. The group is led by an independent chair and includes market trader representatives, expert advisors, and observers from key stakeholders such as the Greater London Authority (GLA) and Haringey Council.

The recommendation was to nominate the Lead Member for Council Housebuilding, Placemaking and Local Economy to represent the council as an observer on SSMPAG. This role is non-voting and intended to act as a conduit for information flow between the group and the council, with the observer potentially providing points of information or opinion when the group makes recommendations. The report highlighted the council's longstanding interest in the market's return and its potential to reinvigorate the local economy.

Appointment of External Auditors for Homes for Haringey

The meeting was scheduled to discuss the appointment of new external auditors for Homes for Haringey (HfH), a wholly-owned subsidiary company of the Council. As the owner of HfH, the Council's consent is required for the appointment or change of auditors, as stipulated in the Members Agreement.

Homes for Haringey requires an independent statutory audit of its financial statements for 2023/24. The previous auditors, PricewaterhouseCoopers, resigned in December 2023. The report indicated that only one submission was received from a firm specialising in auditing small housing organisations. The recommendation was for the Leader of the Council to give consent for HfH to appoint the identified Chartered Accountants as external auditors.

The report noted that the costs for this audit would be borne by Homes for Haringey, not directly by the Council. Failure to appoint auditors in a timely manner could lead to HfH breaching its statutory requirements under the Companies Act 2006 and incurring penalties for late filing of accounts with Companies House. The proposed auditors have confirmed their ability to meet the necessary timescales for the audit to be completed by August 2024, allowing for presentation to the HfH Board and subsequent filing.