Decision details

The Executive considered a report setting out the 2015-16 draft budget for the Housing Revenue Account (HRA). The updated HRA Business Plan, approved by the Executive on 25 November 2014, had set the framework for the proposed budget outlined in the report

The report includes detailed HRA revenue budgets for 2015-16, a ten-year revenue budget projection and the Housing Investment Capital Programme. These were based on the assumptions set out in the approved business plan.

The ten-year projection had indicated that the revenue account was consistently able to generate around £11 million per annum in contributions for future capital investment, in either the existing stock or the provision of new units.  The ten-year budget projection reflected the current Business Plan, attaching a lower priority to the repayment of debt principal inherited as part of the self-financing HRA settlement. 

The report had proposed that weekly rents for council dwellings be increased by 2.2% and that a local rent convergence scheme be implemented. Agreement was also sought to a capital investment programme totalling £12.5 million. The report also included details of the various fees and charges proposed for other HRA services.

Having considered the report, the Executive

RECOMMEND:

(1)      That the HRA revenue budget, as set out in Appendix 1 to the report submitted to the Executive, be approved.

(2)      That the rent of Council owned dwellings be increased by 2.2% with effect from 6 April 2015, to be adjusted so as to comply with the local rent convergence policy by applying locally specified caps and limits.

(3)      That the fees and charges for HRA services specified in Appendix 2 to the report be approved.

(4)      That the Housing Investment Programme set out in Appendix 5 to the report (current approved and provisional schemes), be approved.

The Executive further

RESOLVED:

Subject to Council approving the budget on 11 February 2015:

(1)       That the projects forming the HRA major repair and improvement programme set out in Appendix 3 to the report be approved.

(2)       That the new capital proposals in respect of the new build schemes at Willow Way (NB01), various garage sites (NB02) and The Homestead (NB03) set out in Appendix 4 to the report be added to the Housing Investment approved programme, and that the Executive Head of Housing and Healthbe authorised to implement the schemes.

(3)       That the transfer of £1.9 million in respect of the Slyfield Green scheme (Corporation Club) from the provisional Housing Investment capital programme to the approved capital programme be approved, and that the site be appropriated to the HRA from the General Fund.

(4)       That a capital supplementary estimate of £250,000 be approved in respect of the Slyfield Green scheme to enable the new build scheme to be progressed.

(5)       That the equity share repurchase and cash incentive schemes in Appendix 5 to the report be approved.

(6)       That the Executive Head of Housing and Health be authorised in respect of the approved schemes set out in Appendices 3, 4 and 5:

(i)      to make all necessary arrangements to implement all the schemes, including acquisitions and disposals for assembling sites and obtaining all necessary consents (including planning permission where appropriate), and procurement of contractors and development partners;

(ii)     to agree provision for decommissioning and preparation of sites; and

(iii)    in consultation with the Lead Councillor for Housing and Social Welfare to reallocate funding between approved schemes to make best use of the available resources

Reasons for Recommendation/Decision:

To enable the Council to set the rent increase for HRA property and associated fees and charges, along with authorising the necessary expenditure to implement the HRA Business Plan approved by the Executive on 25 November 2014.

(The webcast showing the debate on this matter may be viewed here, timed at 01:03:00)