Agenda item

Decision:

Subject to Council approving the budget on 10 February 2021:

(1)   That the projects forming the HRA major repairs and improvement programme, as set out in Appendix 3 to the report submitted to the Executive, be approved.

(2)   That the Director of Service Delivery be authorised, in consultation with the Lead Councillor for Housing and Development Control:

(a)   to reallocate funding between approved schemes to make best use of the available resources; and

(b)   to set rents for new developments.

Executive recommended to Council:

(1)   That the proposed HRA revenue budget for 2021-22, as set out in Appendix 1 to the report, be approved.

(2)   That a rent increase of 1.8%, comprising the September 2020 CPI (0.8%) plus 1%, as required by the Welfare Reform and Work Act 2016, be implemented.

(3)   That the fees and charges for HRA services for 2021-22, as set out in Appendix 2 to the report, be approved.

(4)   That a 3.4% increase in garage rents be approved for 2021-22.

(5)   That the Housing Investment Programme as shown in the amended Appendix 4 as set out in the Supplementary Information Sheet (current approved and provisional schemes), be approved.

Reason(s):

To enable the Council to set the rent charges for HRA property and associated fees and charges, along with authorising the necessary revenue and capital 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 lead or lead councillors and any dispensation granted:

None.

The Executive considered a report on the proposed Housing Revenue Account (HRA) budget for 2021-22 which had been built on the estimates and assumptions set out in the HRA Business Plan 2019 - 2049. The business plan, which had been approved by Council in February 2019, was scheduled for review during the course of this year in the light of the COVID-19 pandemic and Brexit as those factors had impacted the Council’s operating environment.

It was proposed that rents for 2021-22 should increase by (1.8%) being the annual (0.8%) September 2019 to September 2020 Consumer Price Index (CPI) plus 1% prescription.  A 3.4% increase in garage rents was also proposed from April 2021.

There was a stock of 5,206 homes at the start of the year. It was noted that during 2020-21 there had been an increase in Right to Buy of 50%. The Government had extended the deadline to repay Right to Buy receipts and there were none to be repaid in the coming financial year. The Council had first refusal on any housing sold under Right to Buy that come on the open market and some properties had been repurchased.

Council continued with a policy not to repay debt to the HRA  but to use any surplus to invest to improve its housing stock and build new houses where possible.  Repayment of the debt remained at a stable interest rate. There had been an underspend of £2 million on the budget for 2020-21 due to an inability to undertake repairs due to the pandemic. This would be transferred to reserves. There was £122 million in reserves currently and the Council had active plans to utilise those reserves in providing additional housing. 

A  bad-debt provision had been allowed for £500,000 for the year to come due to the ongoing impact of the pandemic on Council residents.

Having considered the report, the Executive

RESOLVED: Subject to Council approving the budget on 10 February 2021:

(1)   That the projects forming the HRA major repairs and improvement programme, as set out in Appendix 3 to the report submitted to the Executive, be approved.

(2)   That the Director of Service Delivery be authorised, in consultation with the Lead Councillor for Housing and Development Control:

(a)   to reallocate funding between approved schemes to make best use of the available resources; and

(b)   to set rents for new developments.

The Executive further

RECOMMEND:

(1)   That the proposed HRA revenue budget for 2021-22, as set out in Appendix 1 to the report, be approved.

(2)   That a rent increase of 1.8%, comprising the September 2020 CPI (0.8%) plus 1%, as required by the Welfare Reform and Work Act 2016, be implemented.

(3)   That the fees and charges for HRA services for 2021-22, as set out in Appendix 2 to the report, be approved.

(4)   That a 3.4% increase in garage rents be approved for 2021-22.

(5)   That the Housing Investment Programme as shown in the amended Appendix 4 as set out in the Supplementary Information Sheet (current approved and provisional schemes), be approved.

Reasons:

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