1. Portfolio/Number/Name:C/C1 Reducing unit costs in Communities Scotland Development Programme |
2. Programme/Activity: To fund more housing from a set level of funding by a reduction in the average grant per housing unit provided through the Affordable Housing Investment Programme ( AHIP). Further details of the Affordable Housing Investment Programme can be found at the following web address:www.communitiesscotland.gov.uk/web/FILES/Investment_prog_2004.pdf |
3. Efficiency | 3.1 Current target; £m | | 2005-06 | 2006-07 | 2007-08 |
Cash | 0 | 5.0 | 9.0 |
Time | 0 | 0 | 0 |
3.2 Efficiencies delivered; £m | | 2005-06 | 2006-07 | 2007-08 |
Cash | 0 | - | - |
Time | 0 | - | - |
4. Accountable Officer for delivery | Nicola Munro, Head of Development Department, Scottish Executive Angiolina Foster, Chief executive, Communities Scotland |
5. Project Manager | Alistair Dickson, Head of Investment, Communities Scotland |
6. EGDD Portfolio Manager | Angus Gardner |
7. Description of efficiency and actions to be taken | 7.1 What is the efficiency improvement? How will the efficiencies be made? The Affordable Housing Investment Programme ( AHIP) is concerned with funding housing for rent and low cost home ownership, and social and environmental improvements principally through registered social landlords and private developers. Savings will be made by reducing the average amount of grant per unit provided through the AHIP towards the total new and improved unit approvals on an annual basis. The effect of this will be an increase in the level of output from a set amount of funding. The calculation will be as follows: Average grant per unit (2004/05 as at 31 Jan 05) minus Average grant per unit (per year for the period 2005/06 to 2007/08) multiplied by Number of Unit Approvals (per year for the period 2005/06 to 2007/08) This calculation is to be undertaken every year in order to calculate annual savings, and will be adjusted to current year prices. |
7.2 What are the main actions that are needed to secure the delivery of this efficiency improvement? Communities Scotland will promote and incentivise larger scale and longer term construction contracts through collaboration among Registered Social Landlords. They will review targets and streamlining practices and amend financial appraisal assumptions published in their procedure notes. The key delivery action managers are all contained within the Communities Scotland structure. |
8. Associated costs | 8.1 Are there any development or redundancy costs associated with the delivery of this efficiency? No. |
9. Measurement | 9.1 What are the inputs that will be measured? The average grant per housing unit. |
9.2 What are the outputs that will be measured? More new or improved houses for the same level of public expenditure. |
9.3 What is the baseline for inputs and outputs? The baseline for measuring inputs and outputs is 2004/05. |
10. Quality cross-check | 10.1 What quality indicators are being used to ensure that quality of service is maintained or improved? We collate and monitor information on space standards, as measured by total floor area, compliance with Housing for Varying Needs standards and energy efficiency for all housing projects which we grant aid to ensure that the quality of housing is maintained or improved. |
11. Monitoring | 11.1 What are the arrangements for monitoring the delivery of efficiencies? Communities Scotland will review targets and streamlining practices and amend financial appraisal assumptions published in their procedure notes. The key delivery action managers are all contained within the Communities Scotland structure. The data that will be used to measure progress will be sourced from files on the number of new and improved unit approvals that are made on an annual basis. The required information is easily quantifiable, readily available and collected in a consistent and well understood format in line with up to date guidance. No action is needed to update this. |
12. Reporting | 12.1 What are the arrangements for reporting the delivery of efficiencies? Communities Scotland, Head of Investment will monitor progress towards the target on a quarterly basis and the data for each year will be published in an Annual Statistical Report. |
13. Dependencies | 13.1 Explain if your efficiencies are dependent on legislation or other structural changes being achieved. Savings are not dependent on legislation or other structural changes being achieved. |
14. Use of efficiencies | 14.1 How are the efficiencies released from improvement activity being used to improve front-line services? This efficiency saving was assumed as part of the allocation made by the Scottish Executive to Communities Scotland. This freed up resources for Ministers to allocate to their priorities. |