SHR Board Minutes Minutes - 6 November 2024

Present

Meeting with the Minister for Housing

GW welcomed the Minister and his colleagues and all present. 

The Minister acknowledged the work GW, SW and AW have done, noting their terms as SHR Board members will end in 2025 after eight years.   He also thanked all of SHR’s Board. 

The Minister highlighted the best use of data and that this is an important element for Housing to 2040 and the Housing Bill, especially to inform at a local level.

The Board and the Minister had a wide-ranging discussion on priorities and challenges.

GW & MC highlighted priorities for SHR including:

• homelessness and the systemic failures, the housing emergencies declared by local authorities and Scottish Government;
• SHR’s work to publish data analysis of information it and Scottish Government gather to inform discussion;
• ongoing structured conversations with all local authorities to get behind the figures and seek updates, which will inform SHR’s risk assessment and future engagement which will be set out in engagement plans;
• engagement more broadly with RSLs and with all social landlord representatives;
• discussions with local authorities around standards in Gypsy/Traveller sites and about tenant and resident safety;
• the focus on RSLs on governance and financial health;
• impact of the UK budget around National Insurance contributions and how this will impact rents;
• work with stakeholders to respond to the Grenfell report, looking to the changes in English legislation and implications for the Scottish context; and
• the Scottish budget, efforts SHR has made  to drive down costs, including in-year spend controls to help try to deliver 2024/25 savings for Scottish Government, explaining the majority of costs for SHR are staff related, alongside the Business Intelligence system used to gather and automate data collection. 

The Minister reflected and highlighted:

• the differences in each local authority situation;
• the range of challenges including RAAC, planning, asylum-based homelessness presentations;
• the solutions focus of the Housing to 2040 Strategy Board, work with ALACHO and COSLA and how the Scottish Government has restructured to focus on the housing emergency;
• work with individual local authorities to understand what they are doing and how they are responding, with a particular focus on those with the greatest challenges;
• importance of data;
• work to reduce voids in Edinburgh and how Scottish Government is seeking to work with each local authority to help them bring forward actions plans;
• engagement with SFHA around the forthcoming prevention duties set out in the Housing Bill and also around mid-market rent;
• acquisitions and targeting work with COSLA;
• work to explore with COSLA why some local authorities have experienced fewer homelessness presentations;
• housing as priority for the First Minister and considerations for the forthcoming budget;
• importance of a collaborative approach, drawing in ideas from the sector alongside targeted deep dives focussed on voids and empty homes;
• the UK budget and the impact of changes around financial transactions and charitable bonds, interest rate drops; and
• work with the Housing Investment Task Force and local authority Chief Executives seeking to build homes as easily as possible, while freeing up capital. 

LM explained the restructuring within Scottish Government and how it now has a team designated with responding to the Housing Emergency.  LM also highlighted the important of a collaborative approach working with stakeholders on workstreams focussed on supply. 

The Minister advised the Board that the Scottish Government is speaking regularly (with some weekly meetings) with local authorities about voids and empty homes and that more communication is planned with RSLs around voids.  He emphasised that the Scottish Government is looking at ways to be supportive.  The Minister reported on strategic housing work to improve supply, focussed on investment opportunities and bring homelessness down, detailing a range of government initiatives across housing, health, and prison and asylum services. 

The Board and the Minister discussed:

• the range of landlord and stakeholder groups that SHR uses to engage with the sector;
• the impact of new build requirements on construction costs;
• fuel poverty and the real challenges for rural areas in Scotland;
• the work of the Housing to 2040 Strategy Board, noting the Scottish Government is seeking collaborative solutions;
• void management, noting the complexity and balance between housing management and maintenance, acknowledging that offers can be rejected and therefore void periods prolonged. It also noted the range of challenges around utilities provision that impacts voids and construction and welcomed a forthcoming meeting with the providers and the Cabinet Secretary;
• ways that Scottish Government is exploring to bring empty homes into use, noting that targets are challenging and risk unintended consequences and outcomes such as reduced turnover;
• structured conversations that SHR is having with all local authorities, noting that not all have seen an increase in homelessness; and
• role of tenants, opportunities to input, noting local authority duties to consult locally and that the longer people are in the system the greater the potential trauma, particularly for children.  It also noted the great variation in reasons that people present as homeless; and
• the importance of engagement with advice agencies such as Crisis and Shelter and the importance of listening to homelessness system users.

The Minister reported on work in response to the Grenfell report and the Board noted he would provide a further update.  It noted SHR has been involved in some stakeholder meetings on cladding. 

The Minister and Board also discussed some innovative approaches that Scottish Government is testing to fund mid-market rent properties and that scaling is an important consideration as well as ways to draw in sources of capital from different places.  SHR reported that traditional investors still have an appetite to lend to the social housing market in Scotland. The Minster acknowledged the need for policy clarity including around rent controls to assist investment decisions and welcomed considerations of housing as a priority by the First Minister ahead of budget setting for 2025/26.  He acknowledged the economic contribution construction can provide and how it can address broader poverty issues.  

The Board thanked the Minister and his team for meeting with it and welcomed the opportunity for the discussion. 

Workshop discussion

The Board and Management Team considered the meeting with the Minister and his team and discussed:

• the Scottish Government’s approach and feedback from stakeholders;
• voids and empty homes, agreeing these are complex issues, which form part of a working housing system;
• Scottish Government’s aspirations around additional frequent data collection, agreeing that SHR needs a clear regulatory purpose and authorising environment for all the data it collects and noting MC’s ongoing discussions with Scottish Government on this; and
• the importance of stakeholder engagement, agreeing that SHR should continue to be willing to engage and inform discussions with Scottish Government and other stakeholders.

The Board asked GW and MC to reflect on discussions to inform future engagement with Scottish Government and Ministers.  

Action: GW and MC to reflect on discussions to inform future engagement with Scottish Government and Ministers.  

Apologies & declarations

The Board noted apologies from Board members Siobhan White (SW), and also from SHR Assistant Directors: Robert Laley (RL), John Jellema (JJ) and Nicola Harcus (NH).  

CS declared an interest in agenda item six and the Board noted as CS is Chair of Tenants Together Scotland, he will not participate in discussions relating to SHR’s Tenant Liaison Group.      

There were no other declarations of interest. 

Mid-year Budget review

IM presented an update to SHR’s budget position at 30 September 2024 and proposed a restated revenue budget based on a mid-year review of available resources and expenditure.  IM highlighted:

• proposals to return £50K capital funding to the Scottish Government because SHR was able to move to a new office without requiring capital expenditure;
• projected revenue expenditure and potential savings that SHR aims to achieve and how these may contribute to balancing the budget; and
• proposals to establish contingency funding from savings to give SHR some flexibility and help manage potential revenue return to the Scottish Government later in the year. 

The Board considered the budget update and review and discussed:

• returns of funds to the Scottish Government, noting these are welcomed;
• Scottish Government HR approach to salary scales and new joiners;
• if any improvements are needed to SHR’s office space, welcoming the updated Wi-Fi provision;
• IFRS 16, which introduces since lease accounting model that recognises assets and liabilities for all leases with a term of more than 12 months, noting IM will provide MD with a further update on the technicalities outwith the meeting; and
• procurement support, noting that SHR will commission expertise from Scottish Government to support contract procurement for legal advice and website hosting and support. 

The Board noted the expenditure in the year to date, approved the re-stated revenue budget for 2024/25 and approved the return of £50K capital to Scottish Government.  

Action: IM to return £50K capital to Scottish Government and implement restated revenue budget for 2024/25. 

Mid-year Operating Plan review

MC presented a mid-year review of SHR’s operating plan for 2024/25.  He highlighted the Scottish Government’s new IT systems for finance and HR, explaining the continued SHR resource input and how this is impacting all of SHR staff as system users, explaining particular pressures on those involved with corporate work.  The Board noted this could impact other work plans.  

MC also explained how Management Team use the operating plan to responds and highlighted new activities added since April 2024 and flagging the most significant being the work with Scottish Government and stakeholders to inform the housing emergency considerations.  

The Board considered the review and discussed:

• closed captions videos, noting feedback from the Tenant Liaison Group and asked IM to explore this further with the Comms Team;
• the introduction of the 35 hour working week by Scottish Government and how that may in turn impact flexi time balances and work life balances.  It noted that Management Team are monitoring this, and that no immediate impact has been reflected in the operating plan review, but could and will be considered when forming the 2025/26 plan;
• proposals to defer thematic work on development, asking Management Team to consider if there are delivery options such as scoping out this work in 2024/25, which could help early completion;
• the impact of an adverse budget on work plans for 2025/26;
• SHR’s role in engaging directly with tenants, noting recent feedback to the Parliament and opportunities to explore work with Tenants Together Scotland further to complement the existing Liaison Group, National Panel and Tenant Assessor work.  The Board also noted an update on Tenant Assessor resources;
• SHR’s corporate risk register, noting changes around landlords’ capacity to act as rescue partners if needed;
• Stakeholder support, noting feedback provided to the Scottish Parliament and how that can be reflected in SHR’s corporate risk register;
• likelihood of cyber security incident and how decisions are made around related risk scores.  The Board noted IM will discuss SHR’s current approach to risk management further with AA as part of his induction; and
• the relationship between the operating plan and visibility on how SHR manages risk, asking ARAC to consider the Board’s discussions further.  The Board noted for context that it had reviewed SHR’s risk management strategy agreeing the current approach in April 2024. 

The Board welcomed the discussion.  It noted progress in the year to date.  The Board approved the mid-year adjustments to SHR’s operating plan, subject to some action points. 

Actions:

• IM to explore the future use of videos with the Comms Team;
• Management Team to consider options around the development thematic further;
• ARAC to consider the Board’s discussions around the corporate risk register and linkages to the operating plan.

Tenant Liaison Group Terms of reference

MC presented reviewed terms of reference for the SHR’s Tenant Liaison Group highlighting that that the previous Regional Networks have re-constituted as Tenants Together Scotland.   He also explained that the proposed terms seek to more formally involve SHR Board members, similar other stakeholder engagement groups such as the landlord forums.   MC reported that Tenants Together Scotland and the group members are supportive and an initial review after one year to check all is working well is proposed.  

The Board considered the terms of reference and discussed:

• membership and quorum, noting the SHR Board members would attend to represent SHR, asked MC to clarify this and quorum arrangements including if the Chair is absent further in the terms of reference;
• discussions that GW, MC and CS have had around handling his conflict of interest as Chair of Tenants Together Scotland, from which the group membership is drawn;
• proposals for an SHR Board member to chair the group, noting how this will better align with other stakeholder engagements and raise the profile of the Group more directly with the Board;
• SHR Board member involvement, noting that GW wishes to nominate HTT to take on the Chair role and that further consideration can be given to a second member attending being mindful of conflicts of interest.   The Board also noted that additional Board observers can be accommodated;
• the Group Coordinator role, noting this is a representative from TTS, but it is not CS as this would be a conflict of interest;
• feedback from the Group and TSS around the proposed changes, noting the good and well-established working relationship and that SHR had tried to address any concerns raised and will test after one year to ensure all is working well;
• how agendas are set and considered in practice, asking MC to better reflect that in the text and tone of the terms of reference;
• the approach to having terms of reference and publishing minutes, noting other engagement groups have less formal structures and records of discussions, but that hosting Board members will check in to see this fits with participants’ needs when they next meet.

The Board asked MC to take account of its feedback when finalising the Term of Reference and subject to those changes approved it.   It welcomed that HTT will take on the role of the Chair for the Group and noted GW will give further consideration to the second SHR Board member place. 

Actions:

• MC to take account of its feedback when finalising the term of refence.
• GW to give further consideration to the second SHR Board member place. 

Corporate Parenting Action Plan update

The Board noted that LM was due to attend to present on an update on SHR’s Corporate Parenting Action Plan and noted the related papers in the Board pack.  It agreed to postpone the item until she is available to attend.

Action: LM to rearrange attending SHR Board to present an update on SHR’s Corporate Parenting Action Plan.

AOB and agenda planner

Budget - The Board discussed changes to National Insurance contributions under the recent UK Budget and the impact on Scottish public bodies and regulated bodies.  

The Board noted indications from Scottish Government that SHR may be recharged for the new finance and HR IT systems. 

MC confirmed he will keep the Board updated on any budget related updates as and when available. 

Board recruitment – GW updated the Board on progress in preparing for the forthcoming Chair and Board member recruitment.   The Board also discussed the Deputy Chair role and GW asked members to indicate if they are interested in taking over from AW.  The Board noted that AW will stand aside prior to June 2025 to allow for handover before the end of his term.  

Agenda Planner – The Board welcomed that Tenants Together Scotland and the Scottish Human Rights Commission will attend the January workshop as guests.   The Board noted the agenda planner.  

Parliamentary Committee – GW updated the Board on engagement with Committee ahead of presentation of SHR’s annual report.   The Board welcomed the scrutiny and noted planned evidence sessions with some of SHR’s stakeholders.   

Effectiveness of meetings and papers

The Board welcomed the opportunity to use the conference rooms at High Street, agreeing these worked particularly well with external guests and noted experience in the other meeting rooms in the building. 

The Board noted feedback from GR and DW and thanked them for attending.

Private session

The Board met with MC in private and then held a private meeting for members only.   

Briefings

Between the 21 August and 3 December the Board received briefings covering:

• All SHR publications
• Scottish Parliament Committee work
• New member introductions
• Media updates
• Cyber security advice
• Scottish Government information on rent controls
• Scottish Government homelessness statistics