To seek Member approval to accept the additional funding awards and amend the capital programme accordingly.

Councillor Graham Marsh, Portfolio Holder forCommunity Safety, Leisure and Culture and Carbon Reduction introduced a report on the Sustainable Warmth Grant Allocations – Home Upgrade Grant 2 (HUG2) and Local Authority Delivery (LAD3) to seek Member approval to accept the additional funding awards and amend the capital programme accordingly.  Particular emphasis was given to sections 1 and 2 of the report presented, pages 79 to 82 of the Agenda refer.

Members noted that Executive Board had previously agreed to accept £15.4 millionsecured from the Department for Energy Security and Net Zero, via Midlands Net Zero Hub, across the South and East Lincolnshire Councils Partnership (S&ELCP) for the next phase of Sustainable Warmth delivery known as HUG2.  The First Contract Year Award Letter had now confirmed the 2023-24 allocation of £6,160,000 and agreement was sought to amend the capital programme and adjust the revenue budget accordingly in line with this.

In addition, due to underspend elsewhere at other local authorities, it had been possible to secure an additional £1.1 million of funding for LAD3 delivery under the current Sustainable Warmth programme.  Agreement was sought to accept these additional funds and to amend the capital programme and adjust the revenue budget accordingly for the LAD3 award.

The recommendations were duly proposed and seconded.

During discussion reference was made to the following:

Councillor Jill Makinson-Sanders stated that she was happy to support the recommendations.  From experience with a local social housing provider, it was highlighted that ground source heat pumps did not work and that fuel poverty had not been tackled which had resulted in an increase in health inequalities. 

In response, the Portfolio Holder forCommunity Safety, Leisure and Culture and Carbon Reduction stated that he fully agreed with the comments, however, did not consider that this was a result of the ground source heat pumps but the insulation that was needed to improve the efficiency of heat ratings and further highlighted that it was now recognised that a lot of social housing needed work.

Councillor Simpson was pleased to hear that money had become available.  It was however, queried whether contractors were delivering in a timely manner, as a large number of them were not local.  This also had an impact on the carbon footprint which took a long time to offset, following which it was queried whether the Council could ensure that it used local contractors.

In response, with regards to external contractors the Portfolio Holder forCommunity Safety, Leisure and Culture and Carbon Reduction stated that it was a national problem recruiting locally but assured Members that schedules of work were in place and contractors had to work to a certain standard.

Upon being put to the vote, it was

RESOLVED

1.    That the capital programme and revenue budget to include HUG2 funding in line with the table set out in 2.2 (2023-24: Capital £5,600,000 and Revenue £560,000 / 2024-25: Capital £8,400,000 and Revenue £840,000) be amended.

2.    That the additional LAD3 funding and to increase the existing capital project and the associated revenue budget as outlined in 2.8 (2023-24: Capital £1,000,000 and Revenue £100,000) be accepted.