Agenda item

Housing Revenue Account Budget 2021-22


The Council considered a detailed report on the proposed Housing Revenue Account (HRA) budget for 2021-22, which had been built on the estimates and assumptions in the 2019-2049 HRA business plan approved by the Council in February 2019, which would be reviewed in the light of the current pandemic and Brexit as it affected the Council’s operating environment.


The Council noted the update information and corrections to the report which were set out in the Order Paper.  Councillors noted an error in the report on the calculation of HRA rents. The measure of CPI used in the calculation should be 0.5% (not 0.8%) representing the September CPI published by the Office for National Statistics, as set out in the April 2020 Rent Standard issued by the Regulator of Social housing.  This had resulted in a reduction in planned surplus on revenue by £91,480.  It was therefore proposed that the rents for 2021-22 should increase by 1.5% being the annual (0.5%) September 2019 to September 2020 Consumer Price Index (CPI) plus 1% prescription.


A 3.4% increase in garage rents was proposed from April 2021.


The HRA estimates had been drafted on the premise of a lower priority to the repayment of debt principal inherited as part of the self-financing HRA settlement as proposed in the business plan. 


The report, which included details of progress with the new build programme, together with the proposed investment programme in tenants’ homes, had also been considered by the Joint Executive Advisory Board at its meeting on 7 January 2021, whose comments were included therein. 


At its meeting held on 26 January 2021, the Executive had, subject to Council approving the budget at this meeting, approved the projects forming the HRA major repairs and improvement programme, as set out in Appendix 3 to the report and had authorised the Director of Service Delivery to reallocate funding between approved schemes to make best use of the available resources, and to set rents for new developments.


Upon the motion of the Lead Councillor for Housing and Development Control, Councillor Caroline Reeves, seconded by the Lead Councillor for Resources, Councillor Tim Anderson, the Council




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


(2)   That a rent increase of 1.5%, comprising the September 2020 CPI (0.5%) 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 Appendix 4 to the report (current approved and provisional schemes), be approved.



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.



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