Agenda item

(Director of Housing) To consider the attached report (FPM-019-2014/15).

The Assistant Director (Housing Operations) presented a report for a supplementary estimate of £40,000 funded from the Housing Revenue Account (HRA) for the engagement of Stephen Knafler QC, for successfully defending a legal challenge in the High Court against the Council’s Housing Allocations Scheme’s Residency Criteria and the provision of advice given on the Council’s revised Housing Allocations Scheme.

The Council’s Housing Allocations Scheme came into force on 1 September 2013 and under the scheme applicants were required to meet the Local Eligibility Criteria, which involved applicants being a resident of the District for a minimum of three consecutive years subject to certain exceptions. The Allocations Scheme was referred to Stephen Knafler QC to review because of his considerable experience in housing law and was considered by him to be legal. Following this change the Council received 170 written appeals with one in particular who sought legal advice and applied for a Judicial Review. This case went onto a full Judicial Review hearing as “the matter is of some importance and significance and should be determined as soon as reasonably possible”. The Claimant was awarded Legal Aid allowing her to be represented by a QC and Junior Counsel on the basis that the matter raised issues of some public importance. Prior to the case being heard, Stephen Knafler QC expressed the view that the Council should defend the claim in order to uphold the Council’s policies and to prevent the Housing Allocations Scheme being undermined.

Following the Judicial Review in September 2014, the Judge rejected all aspects of the Claimant’s challenge and although the Judge refused Permission to Appeal, the Claimant could seek leave to Appeal to the higher Court and the Council would have to consider whether to continue to defend its position.

The Assistant Director (Housing Operations)  advised that, on 21 October 2014 the Housing Scrutiny Panel considered a review of the Housing Allocations Scheme following 12 months’ operation including the Claimant’s case and would be recommending to Cabinet that the Scheme be amended to absolutely clarify that discretion in exceptional circumstances would only apply to persons already admitted onto the Housing Register and that the Director of Communities would not have discretion to allow any  non-qualifying applicants onto the Housing Register.

The Assistant Director (Housing Operations) advised that no budget provision had been made for the unforeseen challenge and therefore asked the Committee to recommend to the Cabinet that a Supplementary Estimate be recommended to Council.

Councillor Murray questioned whether the funding should come from the General Fund rather than the HRA. The Assistant Director (Housing Operations) advised that he had taken guidance from Finance colleagues and had been advised that the source of funding should come from the HRA.

Councillor Church asked whether costs could be secured against other possible claimant’s that were privately funded. The Director of Governance advised that the Council would make any applications possible to recover costs.

Recommended:

(1)        That a Supplementary Estimate of £40,000 from the Housing Revenue Account for  the engagement of Stephen Knafler QC, be recommended to Cabinet for recommendation to the Council for approval.

Reasons for Decision:

In order to secure funding through a Supplementary Estimate funded from the HRA for the engagement of Stephen Knafler QC who successfully defended the Council’s Housing Allocations Scheme’s Residency Criteria under Judicial Review in the High Court and advice on the revisions to the Council’s Housing Allocations Scheme.  

Other Options Considered and Rejected:

As the costs for engaging Stephen Knafler QC had already been incurred due to the reasons set out in the report there were no other options for action.