Agenda item

Councillors noted that the Council owned and managed over 5,200 Council Houses which it rented to tenants who qualified for social housing or for which it held the freehold.  The Housing Revenue Account (HRA) was the ring-fenced account within which the Council recorded the income and expenditure for its operations as landlord to its residents and for the day-to-day management, repairs and maintenance of the council housing stock.

The Council considered a report on 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. The business plan had been reviewed to reflect changes in relevant legislation and guidance, along with consideration of the Council’s declaration of a Climate Emergency and the ongoing challenges of the pandemic as it affected the Council’s operating environment. 

The Direction on the Rent Standard 2019 had required the Regulator of Social Housing to set a rent standard for social housing which came into effect from 2020.  This would have been CPI +1% from the preceding September rate equating to 7.7%, which was the recommended rent increase for the year.  This rate would also apply to those in Shared ownership.

A 5% increase in garage rents was proposed for 2024-25, which was in line with the wider Council policy on fees and charges.

The report included overall details of the proposed investment programme for the properties that were managed within the HRA, additional details of this work had also been set out within the item on the Capital and Investment Strategy. 

The HRA annual budget and HRA business plan had assumed that any surpluses on the HRA were used to invest in redevelopment and upgrading of the existing stock, invest in new build affordable housing to be retained and rented by the Council within the HRA and then if there were sufficient monies available, the repayment of debt taken on under HRA self-financing. 

The 30-year business plan had shown that there were sufficient resources within the HRA to carry out the Council’s investment plans as well as repay the debt over the 30-year business plan period and still leave a healthy reserve balance at the end of the 30 years for further investment not yet identified.

There were further expected investment needs that would be fully developed in order to meet carbon targets and expected regulatory changes, and work on these continued. They were not, however, fully reflected within the current plan, but they would be considered in future reviews.

This report had also been considered by the Joint Executive Advisory Board at its meeting on 11 January 2024 and their comments had been included therein.  At its meeting on 25 January 2024, the Executive also considered this report and had endorsed the recommendations to Council. 

The Leader of the Council, Councillor Julia McShane, proposed and the Lead Councillor for Finance and Property, Councillor Richard Lucas seconded the following motion:

(1)    That the proposed HRA revenue budget for 2024-25, as set out in Appendix 1 to the report submitted to the Council, 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.

Following the debate on the motion, Councillor Joss Bigmore proposed, and Councillor Maddy Redpath seconded the following amendment:

“In paragraph (2) of the motion, substitute “5%” in place of 7.7%.”

The Council noted that if this amendment was adopted, the proposed HRA revenue budget for 2024-25 referred to in paragraph (1) of the motion would also require amendment.  Accordingly, the proposed HRA revenue budget for 2024-25 taking account of a 5% increase in council house rents was set out as Appendix 1 to the Order Paper.

If amended, the substantive motion would read as follows:

 “(1)   That the proposed HRA revenue budget for 2024-25, as set out in Appendix 1 to the Order Paper report submitted to the Council, be approved.

(2)       That a rent increase of 5%  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.”

Following the debate on the amendment it was put to the vote and was lost on the Mayor’s casting vote.

A recorded vote was requested in respect of the original motion, which was supported by four other councillors in accordance with Council Procedure Rule 19 (d).

The Council

RESOLVED:

(1)   That the proposed HRA revenue budget for 2024-25, as set out in Appendix 1 to the report submitted to the Council, be approved.

(5)         That a rent increase of 7.7%, be implemented.

(6)         That the fees and charges for HRA services for 2024-25, as set out in Appendix 2 to the report, be approved.

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

Reasons:

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, which is consistent with the objectives outlined in the HRA Business Plan.

Result of the Recorded Vote:

The motion was approved, with nineteen councillors voting in favour, eighteen against, and seven abstentions, as follows: