Issue - meetings

Decision:

To recommend to Council, meeting on 7 February 2024, that:

1.     the proposed HRA revenue budget for 2024/25, as set out in Appendix 1 to the report be approved.

2.     That a rent increase of 7.7%, be implemented.

3.     That the fees and charges for HRA services for 2024/25, as set out in Appendix 2 to the report, be approved.

4.     That a 5% increase be applied to garage rents which is in line with the wider Council policy on fees and charges.

Reason(s):

To enable the Council to set the rent charges for HRA property and associated fees and charges, along with authorising the necessary expenditure to implement a budget, this is consistent with the objectives outlined in the HRA Business Plan

Other options considered and rejected by the Executive:

None.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.

The S.151 Officer introduced the report that outlined the proposed Housing Revenue Account (HRA) budget for 2024/25, which had been built on the estimates and assumptions in the updated 2023 HRA Business Plan. 

It was noted that the HRA was a completely separate account to the General Fund. The surplus remained but was reducing year on year.

The Direction on the Rent Standard 2019 required the Regulator of Social Housing to set a rent standard for social housing which came into effect from 2020, which would have been CPI +1% from the preceding September rate, this equated to 7.7% and was the recommended rent increase for the year that would also apply to those in Shared ownership. The Leader reminded the meeting that around 92% of the Council’s tenants were on social rent. Of those around 60% were in receipt of Housing Benefit or Universal Credit.

A 5% increase in garage rents was proposed which was in line with the wider Council policy on fees and charges.

The report included the overall details of the proposed investment programme for the properties that were managed within the HRA.

The comments arising from the meeting of the Joint Executive Advisory Board held on 9 January 2024 were set out in the Supplementary Information Sheet.

The Executive received those comments and,

RESOLVED:

To recommend to the Council meeting on 7 February 2024:

1.     That the proposed HRA revenue budget for 2024/25, as set out in Appendix 1 to the report submitted to the Executive, be approved.

2.     That a rent increase of 7.7%, be implemented.

3.     That the fees and charges for HRA services for 2024/25, as set out in Appendix 2 to the report, be approved.

4.     That a 5% increase be applied to garage rents which is in line with the wider Council policy on fees and charges.

Reason(s):

To enable the Council to set the rent charges for HRA property and associated fees and charges, along with authorising the necessary expenditure to implement a budget, this is consistent with the objectives outlined in the HRA Business Plan

The Joint Executive Advisory Board (JEAB) was invited to consider a report which provided a position statement in respect of the 2024/25 draft budget and made recommendations to the Council regarding the Housing Revenue Account (HRA) revenue budget.

The report was introduced and presented by the Lead Specialist for Finance who advised that the revenue budget covered the day to day management and maintenance of the Council’s housing stock which consisted of approximately 5,200 homes.  The HRA was a ring-fenced account as its income was derived from its tenants and it was completely separate from the Council Tax element which supported the General Fund.  The budget had been prepared based on the latest Business Plan.  The report highlighted the key components of the Business Plan together with forthcoming risks and pressures and also set out the aims of the budget in terms of providing value for money.  The debt during the year was estimated to be £157 million with an interest charge of £5.4 million.  The Council was continuing with the theme that providing housing was more important than repaying the debt.  The report also outlined how the budget would be spent with 51% being the direct costs of managing and maintaining the housing stock with a further 21% being put aside to cover depreciation for paying for major works.  Thus the majority of expenditure was invested into the stock.

The Government set a direction for Council’s to increase rents by the Consumer Price Index (CPI) plus 1% based on the rate as at the previous September CPI level.  For 2024/25, this equated to a rent increase of 7.7% which was the maximum amount by which rents could be increased and the figure recommended.  It was also proposed to increase garage rents by 5% which was in line with the remainder of the Council’s fees and charges.

A £7.8 million surplus was being budgeted against the HRA as a whole which would be transferred to reserves.  It was budgeted to have reserves at the end of the financial year of £97 million which were decreasing in line with the new developments in which the Council was investing.  The Section 151 Chief Finance Officer’s statement in respect of the robustness and adequacy of the reserves was included in the report.

The Leader of the Council and Lead Councillor for Housing sought to reassure the JEAB that the recommended rent increase of 7.7% for 2024/2025 was in line with the rent standard for social housing set by the Regulator of Social Housing.  92% of the Council’s tenants paid a social rent, with approximately 60% of those being in receipt of Housing Benefit or Universal Credit.  The level of rent arrears was low, indicating that for most families, their rent remained affordable.

The following points arose from the related discussion, comments and questions for forwarding to the Executive:

1.          With regard to the proposed rent increase, it was noted that the Council’s costs associated with the operation of the Housing service were  ...  view the full minutes text for item 12

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  ...  view the full minutes text for item 90