Decision details

The HRA Tower block Refurbishment and Retrofit Programme is a hugely exciting project that is being delivered through a blended funding approach.

The project will deliver transformational  works to 5 of the council’s 6 tower blocks. The works include:

• Replacement of the external wall insulation (EWI) 
• Retrofit measures to improve the energy efficiency
• Refurbishment works to improve structural and fire safety
• Cyclical and refurbishment works 

In March 2023, Cabinet gave authority to proceed with the programme of work valued at an estimated £19.9 Million.  The purpose of this report is to seek authority for the council to increase the value of the overall project to £40.34 million, incorporating funding from the council’s Housing Revenue Account Major Repairs Reserve together with external funding from both the Social Housing Decarbonisation Fund and the Building Safety Fund. 

This report seeks authority for the Cabinet to:

1. Approve an increase in the scope of the project to include emergency health and safety work.
2. Note the increase in the value of the overall project, in line with the approved capital programme.
3. Approve the letting of a Design and Build contract with Mears Ltd to deliver the main Tower Block Refurbishment and Retrofit Programme, as set out in this report.

Cabinet agreed the following:

1.  An increase in the scope of the project to include emergency health and safety work;

2.  Note the increase in the value of the overall project, in line with the approved capital programme;

3.  The letting of a Design and Build contract with Mears Ltd to deliver the main Tower Block Refurbishment and Retrofit Programme, as set out in the Cabinet report.

The increase in the scope of works is due to the discovery of safety critical issues that must be resolved as part of this project to satisfy the Building Safety Regulator. 

Much of the works have been awarded external funding and therefore must be completed to ensure we remain eligible for the funding

The council has set a deficit budget for the HRA revenue account for 2024/25, drawing on revenues reserves to fund services for the year. This is permitted within the Housing Revenue Account ringfence, but is not sustainable in the long term. Completing the fire safety works, will enable the council to step down the waking watch service which will return the HRA business plan to an annual surplus position and replenishing revenue reserves.

Cabinet has the option to set an alternative limit on this element of the project. This was not  recommended, for the following reasons:

• Considerable work has been completed by officers, the council’s consultants and Mears Ltd to value engineer the project and include only essential elements of work.
• Deferring any elements of work that are scaffolding dependent would ultimately increase cost, due to the high cost of scaffolding high rise buildings.
• Any reduction in the scope of safety critical works would potentially lead to the Building Safety Regulator not approving the technical design. Since the introduction of the Building Safety Act 2022, the Health and Safety Executive is the determining and enforcing authority for building control in respect of all high rise buildings.
• Not completing safety critical works would mean that the council could not stand down the current waking watch service, in place in these blocks, which would have a significant impact on the revenue position of the HRA Business Plan.
• Not proceeding with the decarbonisation and building safety elements of the project would risk the council losing the external funding that has been secured.