Opposition and union chiefs have blasted the Cheshire West and Chester Council’s decision making process after it agreed to pump millions into a company which manages its housing stock.
The funds were approved at a recent meeting of full council, but the Conservative opposition group claim their demands for greater scrutiny of the decision-making processes were knocked back.
Concerns were also raised by a union leader about how the decision was reached, amid claims the usual mechanisms for providing scrutiny of council spending were bypassed.
At a recent meeting of full council, a majority of members voted to approve an increase of £1.5 million per year for ForHousing from 2024/25, which manages 5,300 homes on behalf of the council.
An additional £1.357 million, to cover repairs carried out in 2023/24, was also approved. CWAC said the increased spend reflected 'the increased costs facing the social housing sector across the country’.
But Conservative councillor Mark Stocks said efforts to pass a motion to increase scrutiny were scuppered.
He said: "The Conservative amendment called for tighter scrutiny and transparency, starting with an immediate, detailed financial breakdown of the spend against the budget.
"We also requested ongoing quarterly reports to be presented to the Cheshire West and Chester overview and scrutiny committee since it is absurd for Labour councillors to claim they have sufficient oversight, when they failed to foresee last year's huge £1.35 million budget shortfall.”
ForHousing was awarded a 10-year housing management contract in 2017. A report to full council said over the last 12 months there has been a 'significant increase' in tenant demand for repairs and maintenance which was reflected across the social housing sector.
The report said council officers had 'closely scrutinised data' and received 'extensive further information and clarification' from ForHousing and additional information from a national independent body advising the social housing sector, Housing Quality Network (HQN).
But Ray McHale, sSecretary of West Cheshire TUC, said such large financial outlays should still have been scrutinised by the council’s own boards.
He said: “They used a resolution to full council to bypass all normal budget processes, only a few months after the housing budget was agreed.
"They didn't even take the issue to cabinet but presented an entirely inadequate report implying this was necessary to ensure council housing was maintained.”
He added: “Many back-bench councillors from all parties sit on scrutiny committees where decisions like this can be examined and the cabinet and council officers held to account.
"They are supposed to be independent in exercising this scrutiny function. But the inappropriate process of a motion to full council was used to avoid that independent scrutiny and whip all the Labour councillors to support the motion and reject the scrutiny amendment.”
Cllr Christine Warner, Labour councillor and the council’s cabinet member for homes, planning & safer communities, said the reasons for the increase were ‘obvious’.
She said: “There are strong scrutiny processes in place for all that Cheshire West and Chester Council does, including maintenance of our homes.
"Additional scrutiny isn’t needed when the reasons for additional funding are obvious - there’s a 30 per cent higher demand for repairs and a 30 per cent increase in the cost of repairs across the country."
She added: "I am proud that Cheshire West Labour has decided to invest in homes and increase standards, instead of pursuing the race to the bottom that local and national Conservatives are advocating."
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