SHR Board Minutes Minutes - 25 February 2025

Present

Welcome, apologies & declarations

GW welcomed all present.  The Board noted apologies from SHR Board member Siobhan White (SW). AA and MC reported that they will have to step out at points during the meeting.                        

GW declared a conflict of interest with Blackwood Homes and the Board noted it is referenced in the Board pack.  It agreed that GW should not participate in any related discussion at item 4.

There were no further declarations of interest.  

Consent Agenda

The Board noted and approved the consent agenda including:

• the Chair and Member activity report (subject to a minor correction);
• 3 December 2024 Board minutes and a private note of a Board workshop in January 2025; and
• the matters arising report. 

The Board separately also noted the ARAC update and approved the recommendation from ARAC to make no changes to the terms of reference for the Committee following a recent review.

EF reported that he has accepted an offer from Scottish Ministers to become SHR’s Deputy Chair from 1 April 2025.  

CEO Report

MC presented on issues and developments that impact regulated bodies, the wider housing environment and SHR.  He highlighted the Housing to 2040 Strategic Board, reporting that it will meet next on 26 March and that on behalf of Scottish Government, SHR has issued a data request to RSLs around voids.  He confirmed SHT will share the data with Scottish Government and publish some high-level analysis.  MC also reported on SHR’s ongoing risk assessment and considerations around local authorities impacted by systemic failure. 

The Board considered the report and discussed:

• how the data collection will add to the range of information that the Scottish Government has available to it about voids including data from local authorities and via the Scottish empty homes partnership and for RSLs it is similar to that SHR will collect via the Chater returns next year;
• the current position on RAAC in social housing, noting a few landlords are finalising investigations.  It also noted that SHR is engaging with all landlords who have identified RAAC and has incorporated this into the regulatory risk assessment around asset management approaches.  It noted that recently a landlord uncovered potential RAAC during routine maintenance and that incidences like this may continue to occur over time.  The Board also noted that Scottish Government has provided advice to landlords, but there is no additional funding although it meets with them via a working group; 
• SHR’s plans to set out a final position on the RAAC data collection.  The Board also noted that some landlords have had to decant households as part of the work to address RAAC;
• the 2025/26 budget, noting this was being considered by the Scottish Parliament that day and SHR’s position is not expected to change.  The Board noted that the modest uplift is not sufficient to meet projected costs (including a pay uplift yet to be agreed,) and SHR will seek to manage this via workforce planning when it presents the draft budget and operating plan to the Board in April;
• pressure on the operating plan and how SHR can flex the type of work it does as well as how it does it, while still meeting its statutory duties, agreeing it will be important to demonstrate the impact of this pressure to stakeholders; and
• Staff wellbeing, noting current pressure on resources that is likely to increase as other vacancies emerge, plans for some very limited recruitment and review of line management and portfolio splits in the Regulation Group. 

The Board noted the CEO report.

Regulatory Engagement – serious casework

HS presented a new report for assurance providing the Board with more frequent information on the most serious regulatory casework.  The Board considered the report and discussed:

• the information and format, welcoming the clarity and insight, noting the level of intensive work that SHR undertakes to support positive resolutions;
• if it is possible to be more information on resolution timelines;
• how future updates will be presented;
• Regulatory Standards, asking HS to include a key to assist the reader; and
• frequency, welcoming that this will be provided to every Board meeting.

HS updated the Board on some of the ongoing serious casework.   She also reported on casework relating to serious concerns raised with SHR.  

The Board welcomed the new report, thanked HS and noted the updates.  It asked her to take account of feedback on the report format.     

 Action: HS take account of feedback from the Board on the format of the serious casework report.      

Fife – lessons learned

HS presented on a lessons learned exercise that SHR carried out about the handling for the first serious concern under the new Regulatory Framework.   She highlighted engagement with site residents, their representatives and the Local Authority to inform the exercise as well as improvements planned around updating factsheets, internal procedure notes and further training on human rights.   The Board considered the exercise and discussed:

• the importance of listening to tenants, reflecting on recommendations from Grenfell, agreeing communication with tenants and those who use housing services is key;
• the timeframe for SHR responding to the concerns raised, noting that due to it being the first one and that it involved both Charter and Human rights, SHR had sought legal advice, which, while very valuable had impacted turnaround times and that in part this was extended due to discussions to ensure SHR was confident and clear in its assessment; and
• communications with the Chair, to whom the original concern was addressed, noting actions to clarify internal procedures around updates to the Board.

The Board noted and welcomed the outcome of the exercise.  It approved the actions identified.   The Board thanked HS and the rest of the team involved. 

Action: HS to implement the actions identified through the lessons learned exercise on serious concerns. 

Draft outline annual report narrative 2024/25

RH presented the draft outline for the narrative section of SHR’s annual report and accounts for 2024/25.  The Board considered the outline contents and agreed it would be important to try to highlight the scale of work that goes into serious casework and to also include information on SHR’s work with Gypsy/Travellers.  It approved the outline and noted the timeframe for production.

Action: RH to take account of the Board’s feedback as she prepares the first draft of the narrative for the Board to consider in April 2025. 

Q3 Corporate Performance Report

MC presented SHR’s corporate performance report for quarter three 2024/25, highlighting that casework is now covered in the new serious casework report.  He also highlighted resourcing, reported on issues with the new Scottish Government HR system around recording of flexible working hours and explained that balances like annual leave are reflected in SHR’s accounts as non-cash liabilities.  The Board considered the report and discussed:

• the impact of the new HR and Finance Systems on SHR’s forthcoming audit, noting it and all of the public bodies that use the systems are seeking assurances from Scottish Government and there is some uncertainty around forthcoming audit opinions.   IM reported early planning with Audit Scotland has commenced and the interim audit is about to start, which will include system walk-throughs.  He explained that SHR’s small size and its relatively straightforward finances in terms payroll and invoice payments will be important.   IM also explained that Audit Scotland and Scottish Government are having central discussions that will be fed back to the audit teams and that ARAC will meet in early March, just after the interim audit.  
• the similar experience of the new systems in other public bodies that Board members are involved with;
• how the Board can get more information on performance around ongoing and routine work that does not have an end target dates;
• risks to landlords that may translate into further work for SHR and how this relates to SHR’s own risk assessment, risk appetite and capacity;
• disposal of assets by landlords, noting SHR gets data via the annual stock returns that it reports on via the National Charter report, but that as it no longer has consent powers it does not have a live position and that this is not fully covered by notifiable events.  The Board asked MC to consider if a sense of the scale of change could also be reflected in the annual report.

The Board noted the Corporate Performance report.

Action: MC to consider if a sense of the scale of change in stock levels could be reflected in the annual report.

Budget update

CN presented a budget update on the position to the end of December 2024.   She reminded the Board that spend controls have been in place since mid-year and as a result SHR has achieved savings in both capital and revenue budgets.  For the revenue budget CN explained this relates to staff turnover and movements including pay scale rates assumptions being clarified.  In addition, savings in relation to office costs have been achieved.  The Board considered the update and discussed:

• if any resources are available to produce videos, noting this is unlikely to be resourced in the remainder of 2024/25, beyond those relating to Board recruitment, but some related research features in ongoing work with SHR’s National Panel of Tenants & Service Users;
• recent staff training on difficult conversations, noting this was delivered as part of the legal services contract for at no additional cost to SHR and any follow up will be considered as part of learning and development planning; and
• capital returns, noting that funding was set aside for the office move, which was not required.

CN explained that at mid year SHR had identified £30K savings in revenue and moved this into a contingency budget heading and now with the additional savings achieved and as there has been no call on contingency, £73.5K revenue is proposed for return to the core Scottish Government.  The Board noted SHR communicated the contingency position to Scottish Government at mid-year.  

The Board thanked CN for the update.  It noted the expenditure in the year to date against SHR’s original revenue and capital budgets and the forecast year-end outturn.  It approved return of £13.8K capital and £73.5K revenue funding to Scottish Government, noting the savings achieved through spend controls.  

Actions: CN to return of £13.8K capital and £73.5K revenue funding to Scottish Government.

AOB, Agenda Planner, Effectiveness & DONM

CS reported on his forthcoming participation in a panel at the CIH conference.  The Board noted that the panel will discuss qualification requirements for social housing professionals.  MC explained that in Scotland, there is no legislative basis unlike in England and that SHR’s focus is on Governing Bodies who are responsible for ensuring appropriately qualified staff are appointed.  HS reported on engagement she has had with CIH through a working group and also explained qualifications are not a regulatory requirement in Scotland.  

GW updated the Board on recruitment.  The Board noted that EF has accepted the offer to takeover the Deputy Chair role from 1 April 2025.  The Board thanked AW for his work as Deputy Chair and for supporting the transition, noting this has commenced.  It also thanked SW for her work as ARAC Chair, which ended in December 2024, when EF took on the role. 

The Board discussed the effectiveness of the meeting and papers and welcomed the quality of papers and in particular the new regular report on serious casework.  

The Board noted that it will meet next on 1 April 2025. 

Guest speaker – Stephen Boyle, Audit General - Audit Scotland

SB joined the Board and presented on his work and priories as Auditor General since his appointment in July 2020 by the Scottish Parliament.   He explained the independence of the role and the engagement he has with Parliament.  SB outlined his priorities in the run up to the forthcoming Scottish elections in May 2026 and work plans.

The Board and SB discussed:

• a recent summit on Public Service Reform, how public bodies are engaging and the demographic challenges that Scotland is facing while delivering public services;
• opportunities for joint work and targeted collaboration with other scrutiny bodies to contribute to the Public Service Reform, but agreeing on the importance of testing what any work is seeking to achieve and if collaboration is this the best route;
• regulatory reform to support economic growth in England;
• importance of clarity to empower leaders when considering Public Service Reform, including acceptance of potential related risks;
• SHR’s experience of Audit Scotland, noting that Audit Scotland is considering audit fees and proportionality further;
• SB’s impressions of SHR;
• work ongoing by Audit Scotland on the Scottish Government’s new HR and Finance systems that will be published in October 2025;
• consideration Audit Scotland is giving to how to better share learning from audits, especially when this might provide broader value;
• areas of overlapping interest, especially around homelessness;
• the Crerar review of regulation, Scottish Parliament’s inquiry into the Commissioner landscape and ongoing work that the National Audit office is doing around the water industry; and
• the importance of delivering high quality services.

The Board thanked SB for meeting with it.   He also welcomed the opportunity.  

Private session

The Board held a private session.  

Briefings

Between the 25 February – 1 April 2025

• SHR publications
• Media updates
• Forthcoming staff changes at SFHA
• Correspondence with the Scottish Parliament’s Local Government, Housing & Planning Committee
• Standards Commission update