Shaping the debate Annual report 2010/11 Contents 04 Chair’s foreword Cover images (clockwise, from top left): Decentralisation Minister Greg Clark; 05 Chief executive’s foreword residents at St Catherine Court, Hanover (image courtesy of Hanover); David Orr, Health 06 National Housing Federation board Secretary Andrew Lansley and CHS chief executive Nigel Howlett at the launch of the 2010/11 Federation’s Invest in housing, invest in health publication; and the Federation’s poster for 07 Leadership team the Shhh... don’t mention the housing crisis campaign at Westminster tube station 07 The business plan for 2010/11 08 Delivering the business plan for 2010/11 National Housing Federation Lion Court, 25 Procter Street 18 Other priorities in 2010/11 London WC1V 6NY Tel: 020 7067 1010 19 Looking to the future – the business plan www.housing.org.uk www.inbiz.org for 2011/12 21 Board accountability Designed and printed by SPY Design and Publishing Ltd 21 Accountability and engagement Published by the National Housing Federation, September 2011 22 Financial summary 2010/11 Annual report 2010/11 3 Chair’s foreword “ I’m reassured by the results of our member survey, but we need to keep aiming high to provide maximum value for money.” The business year 2010/11 was an extraordinary A further result of our assessment of risk, and focus period. Having already identified risk management on the Federation’s finances, was our decision to as one of our key priorities the previous year, launch a business strategy review. This will assess the board found itself in the midst of a phase the Federation’s role, strategy and financing, with of profound political change and economic the aim of ensuring we continue to meet members’ uncertainty. Consequently, we had to assess needs and provide maximum value for money. comprehensively the new risks posed both to the The review, which will be wide-ranging and involve operating environment for housing associations members, follows on from our biennial member and to the Federation itself. survey – conducted during 2010/11 – which showed By establishing a clear strategic path for the that 69% of members believe the Federation organisation in response to the Government’s represents ‘good value for money’, up from 56% radical housing agenda, the Federation has been two years ago, 83% believe the Federation is an able to respond effectively to developments and ‘effective source of advice’, up from 77%, and 93% provide strong sector leadership. believe we are ‘proactive in shaping policies and initiatives which will benefit the sector’. We placed an emphasis on engagement with the new Government – and Federation staff regularly met with While these figures are impressive, we believe we figures such as Work and Pensions Secretary Iain must continually assess our offer to ensure we Duncan Smith, Communities Secretary Eric Pickles always provide the best possible service. The review and Housing Minister Grant Shapps. Reacting to the will provide us with a clear roadmap for the future. changing external environment, the board signed off I would like to thank the Federation’s staff and an adjusted package of campaign and lobby priorities the board for their work on behalf of housing following the May 2010 general election. associations. I would also like to thank all those Over the course of the year, we persuaded the officers and board members from our member Government to retain the existing rent formula and organisations who helped contribute to our provide greater flexibility around the development successes in 2010/11. contracts offered under the new funding model. We also helped to persuade ministers to drop their proposal to cut housing benefit for those who have been unemployed for more than a year. Closer to home, the leadership team identified the need for the Federation to drive further costs out of the business and signed off a package of measures also designed to improve service delivery. These have led to the business being streamlined, with Matthew Taylor a 7% reduction in staff, and internal costs being Chair reduced by as much as £500,000. National Housing Federation 4 Annual report 2010/11 Chief executive’s foreword “ Over the past year we have responded swiftly to the challenging agenda, lobbying for change and ensuring your views are heard at the highest level.” During 2010/11, as a new government set out During the current business year, we have a radical, new programme for housing, the continued to represent the views of housing Federation’s board ensured that we were in a good associations, helping to persuade ministers to position strategically to shape the debate. As the adopt a presumption in favour of sustainable details of the new programme emerged, the board development in the new National Planning Policy set the direction for the organisation – ensuring Framework. that we responded to the rapidly changing We have also convinced the Accounting landscape in a dynamic fashion. Standards Board to take steps to ensure that the While ministers proposed radical reform of welfare, implementation of the new International Financial a new approach to planning, a hugely reduced Reporting Standards does not lead to billions of housebuilding budget and cuts to Supporting pounds being wiped from housing balance sheet People funding, we represented the views and asset and reserve totals. concerns of our members through meetings with With value for money being our top priority, we ministers, MPs and other stakeholders – and by decided towards the end of the last business putting across the sector’s case in the national and year to restructure the organisation – so that we regional media. could improve service delivery and streamline the As well as securing the successes mentioned by business. Through this process we reduced our Matthew Taylor in his foreword on the previous staff headcount by 7% (following a reduction of 5% page, through taking this proactive approach, we the previous year) and put in place a leaner, more persuaded the Government to retain affordable efficient structure. housing’s exemption from the Community We are now extremely well placed to work Infrastructure Levy and to make provision for gap effectively with decision-makers and opinion funding payments to stock transfer associations formers to secure the best possible operating until at least March 2015. environment for you. We also persuaded ministers to limit the cuts made to the Supporting People budget – although of course we then had to press local authorities not to pass on further cuts to services at the local level. We persuaded ministers to continue to provide funding for aids and adaptations and secured ongoing funding for the national mortgage rescue scheme. We also launched the West Midlands pilot David Orr of affordable credit scheme My Home Finance – Chief executive with the support of 20 local housing associations. National Housing Federation Annual report 2010/11 5 National Housing Federation board 2010/11 The Federation board has twelve members and is led by chair Matthew Taylor. During 2010/11, it set the strategic direction for the organisation, and dealt with policy issues and business effectiveness. Board members are elected by the membership of the Federation at the annual general meeting (AGM), following open recruitment, led by the nominations committee which then seeks agreement from the board. David Orr sits on the board as Federation chief executive. Matthew Taylor Ann Santry Paul Tennant June Barnes Sinead Butters Matthew Gardiner Mick Kent David Orr Terry Stacy MBE Victoria Stark CBE Lindsey Williams Peter Williams 6 Annual report 2010/11 Leadership team The business plan for 2010/11 The Federation leadership team has four The 2010/11 business plan – which was agreed by the members and is led by chief executive David Orr. board – was based around six pillars, or priority areas: It ensures the strategic direction set by the board • Helping members to provide better access to is implemented effectively, as well as making homes and services decisions on policy and business effectiveness. The leadership team also ensures the effective • Assisting members to provide excellent services management and leadership of Federation staff. for vulnerable and older people • Supporting members to deliver better homes David Orr and neighbourhoods Chief executive Simon Charlick • Helping members to deliver greener homes and neighbourhoods Director of operations Ruth Davison • Ensuring the right capital and revenue income Director of campaigns and neighbourhoods streams for members, and Elaine Walder • Improving our value for money offer to members. Director of commercial services Other corporate priorities during 2010/11 were: • What We Are Proud Of Awards • Running informative conferences • Providing first-class training • Publishing authoritative books • Providing excellent meeting facilities in central London. The board’s role Throughout 2010/11, the board monitored the David Orr Simon Charlick implementation of the business plan it had agreed the previous year, and ensured that the Federation delivered on its projected outcomes and impacts. At regular intervals the board asked whether the work was still worthwhile and viable, whether risks were being addressed, milestones met, and whether the organisation was having the desired impact. From time to time it required that changes be made to reflect changing circumstances. The board’s clear expectation was that each workstream would deliver a set of outcomes that would have a Ruth Davison Elaine Walder significant impact for members. Annual report 2010/11 7 Delivering the business plan for 2010/11 Helping members to provide better access to homes and services Reforming allocations through the secured wall-to-wall coverage in the national and Mobility Taskforce regional media, including coverage on BBC1 News, the Today programme and Radio 2, as well as items We persuaded ministers to reform allocations to in newspapers such as The Sun and the Financial boost mobility for existing tenants in the social Times.