Contact: Jon Pittam, ext 7400, Kevin Gardner, ext 7381

1 Summary

1.1 Cabinet agreed in September 2004 that the County Council should continue discussions individually with Hampshire district councils with a view to reaching agreement on the shared use of additional income from reducing the council tax discount on second homes in the relevant district council area.

1.2 This report provides an update on discussions with district council officers in East Hampshire and the New Forest about the use of the additional income raised in 2004/05 in those areas. It is recommended that:

· Approval in principle is given to East Hampshire District Council's proposals to contract Swaythling Housing Society to manage a pilot Homebuy scheme for Hampshire County Council and East Hampshire District Council key workers in the East Hampshire area using 2004/05 income

· Approval in principle is given to New Forest District Council's proposals to contract Swaythling Housing Society to manage a pilot Homebuy scheme for Hampshire County Council key workers in the New Forest area using some of the 2004/05 income

· Delegated authority be granted to the County Treasurer, in consultation with the Head of Human Resources, to determine the eligibility criteria for County Council key workers in the East Hampshire and New Forest Homebuy scheme.

2 Reason

2.1 Decisions are required on the use of the additional income in 2004/05.

2.2 Use of the income for affordable housing schemes meets aim 5 of the corporate strategy (improving services) and in particular the fourth short-term cabinet priority of improving affordable housing and will also assist with aim 6 (developing councillors and staff) in the recruitment and retention of staff.

3 Other options considered and rejected:

3.1 To use the income for other purposes, including achieving an efficiency saving.

4 Conflicts of interest declared by the decision maker or a member or officer consulted

4.1 Not applicable.

5 Dispensation granted by the Standards Committee

5.1 Not applicable.

6 Reason(s) for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: ................................... ... Date: .........................

Councillor T K Thornber