Agenda item

Reporting person: Giorgio Framalicco

The report before the Committee set out the findings of a review undertaken by Internal Audit of the arrangements established by the Council in respect of the Housing Infrastructure Fund (HIF) project.  The review had been requested by the Committee in September 2021 and the request to employ Internal Audit’s resources had been supported by the Standards and Audit Committee.

The findings of the review were introduced by Giorgio Framalicco, Director of Planning, who advised that the Management Response to the audit report had been the acceptance of the recommendations and the dates for their implementation.  It was noted that the review had identified several risks which had not been included in the risk register for the project.

The Chairman noted that housing targets of the project, an area that was not covered by the existing HIF Oversight Panel, could be kept under review through the Committee, recognising that there were potential risks around the housing element, such as site acquisition and funding plans.

Councillor Johnson, Chairman of the HIF Oversight Panel, advised that the Panel’s remit was primarily focussed on the infrastructure element of the project, and noted that the Auditor’s report had touched on areas that the Panel had not considered, such as cost to date. Councillor Johnson noted the controversial nature of the project but stressed that there were overarching objectives which were to acquire a new railway arch, improve connectivity in and out of the town centre and provide additional homes.  There was a need for high level oversight to ensure the objectives were achieved within the timescale and financial parameters, and that adequate governance arrangements were in place.

Councillor Kirby considered that the Council needed to be clear on how best to run the complicated process of working with external bodies, stating that there were constructive lessons which could be learnt, including around applications for external funding.

Councillor Azad, Leader of the Council, advised that one of difficulties in seeking external finding arose from the fact that the Council did not have control over the application timescale, with the Government normally limiting support to projects which are ready to go.  Unless the parameters set by the Government were changed, it was difficult to put in place protocols that could work within any given timescales.  It was suggested that elements of the HIF project could be raised through the engagement programme taking place with residents.  Councillor Azad re-emphasised the point made earlier regarding the complexity of working on a project such as HIF with many external partners.

Councillor Nicholson asked whether the recommendations outlined in the report would be incorporated retrospectively into the Housing Infrastructure Fund project and into any future projects undertaken by the Council.  Giorgio explained that the findings of the Audit review would be referred to the Oversight Panel, noting that many of the recommendations would be actioned through the Oversight Panel.

Councillor Kirby welcomed the long-term thinking in the bidding process and reiterated his support for the oversight of the housing element of the project.  Councillor Kirby further suggested that the Council’s approach to bidding for funding could be reviewed.

In view of the support for suggestion that the housing element of the HIF scheme should be kept under review, the Chairman proposed the establishment of a task group with the specific objective of keeping oversight of the housing element of the scheme.  The suggestion of Councillor Kirby to review the bidding process could be explored further before being taken forward.

The relationship between the infrastructure development and the housing element of the HIF scheme were noted, with the Committee being advised that, without the bridge and capacity improvements, the existing infrastructure would be unable to cope with the additional housing.  It was further noted that, regardless of the Covid-19 pandemic, it was unlikely that the need has changed, noting that traffic and usage of the town centre has returned to near pre-pandemic levels.

RESOLVED

That (i)    the Housing Infrastructure Fund Scrutiny Review be noted; and

          (ii)   a HIF (Housing) Task Group be established to have oversight of the housing element of the Housing Infrastructure Fund project.