The Housing & Communities Select Committee met on Tuesday, 27 January 2026, to discuss the New Homes Programme, the future of the Voluntary Sector Support Fund (VSSF), and the Council's budget proposals for Housing and Social Investment and Communities. Key decisions included recommendations to the Leadership Team regarding the visibility of statutory and non-statutory costs across the Council, and the committee provided input on potential models for the future of the VSSF.

New Homes Programme Lessons Learnt Report

The committee reviewed a report summarising lessons learned from the New Homes Programme. The report highlighted areas for improvement in governance, cost control, procurement, design, construction, handover, and post-completion performance. Key issues identified included optimistic initial programme timelines, the impact of economic volatility and regulatory changes on construction costs, and challenges with contractor performance and client oversight in early phases. The report detailed specific issues encountered at the Hewer Street, Kelso Cochrane, Silchester Arches, and Acklam Road developments, including problems with ventilation, damp, fire alarm systems, lift outages, asbestos, and contractor changes. The Council has implemented a range of improvements, such as a new financial management tool, standardised Employer's Requirements, a single Common Data Environment for information management, and an integrated defects management process. An external audit of Phases 1 and 2 of the programme is to be commissioned.

Voluntary Sector Support Fund (VSSF) Consultation and Review

The committee discussed the proposed changes to the Voluntary Sector Support Fund (VSSF) for the period 2027-2030, in light of central government budget reductions and a significant budget gap facing the Council. The report detailed the consultation and engagement process with residents and the voluntary and community sector (VCS). The consultation revealed that while nearly half of Citizens' Panel members agreed with reducing Council funding to the VCS, a majority believed core funding should still be provided through the VSSF. The VCS sector overwhelmingly supported continued core funding, prioritising services that mitigate deprivation and disadvantage, and expressed concerns about the impact on smaller organisations. Three potential models for the future of the VSSF were presented: a streamlined programme with fewer, larger grants; a model dividing the borough into geographic zones with anchor organisations; and a strategic partnership approach with flexibility for smaller needs. The committee provided comments on these models, which will inform the Lead Member for Communities & Community Safety's decision on the future funding arrangements.

2025/26 Budget Breakdown – Statutory vs Non-Statutory Services (Housing and Social Investment and Communities)

The committee examined the budget breakdown for Housing and Social Investment and Communities, focusing on statutory versus non-statutory expenditure. Members found the report's presentation of expenditure categories, such as uncontrollable and controllable, difficult to understand and requested a clearer breakdown of uncontrollable costs for community services. The committee also sought further explanation on uncontrollable costs in housing services, which were described as overheads and central services. A suggestion was made to consider public commitments as statutory by implication under the Localism Act 2011. The committee noted concerns about the cost of the non-statutory Supporting People service and requested a cost-benefit analysis. Ultimately, the committee RECOMMENDED to the Leadership Team to Ensure the Leadership Team have sight of the statutory and non-statutory costs across the Council.

The Housing Revenue Account Budget

The committee reviewed the Housing Revenue Account (HRA) budget, including the delivery of the new homes programme, particularly the Silchester Arches development, which had experienced issues leading to cost increases. Discussions covered the borrowing arrangements for the HRA, with officers explaining a long-term debt of 4.75% on new borrowing, primarily from the Government and the Greater London Authority. The committee questioned whether proposed savings had been tested and requested more detail on the savings proposals table. Concerns were raised about the costs of outstanding work and the basis for charging Value Added Tax (VAT). The committee also requested eligibility criteria for the tenant support fund and enquired about the impact of budget limitations on achieving carbon neutrality in the housing stock. Regarding rent increases, officers explained the Council proposed a £2 per week convergence if permitted by the Government, aiming to reach formula rent, not market rent.

Select Committee Work Programme

The committee reviewed its work programme and discussed upcoming scrutiny activities. An update was provided on the 'deep dive' into consultation, which has been scaled back to 'scrutiny in a day' and is scheduled to be reported in March 2026. The committee also enquired about a meeting with the Hostels Working Group, noting that discussions on Princess Beatrice House had been postponed. It was agreed that the format for discussing sheltered accommodation, disabled access, and older voice topics would be reviewed ahead of the March 2026 meeting.