Agenda item

Decision:

1.     That the initiatives, services and budgets as set out in the report submitted to the Executive and Appendix 1 to the report, be approved.

2.     That the Director of Service Delivery be authorised, in consultation with the Lead Councillor for Community and Housing:

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

(b)   to set rents accordingly.

The Executive made the following recommendations to Council (9 February 2022):

1.     That the proposed HRA revenue budget for 2022-23, as set out in Appendix 1 to the report, be approved.

2.     That a rent increase of 4.10%, comprising the September 2021 CPI (3.10%) plus 1% in line with the Direction on the Rent Standard 2019 and as set out within Guidance provided by the Regulator of Social Housing, be implemented.

3.     That the fees and charges for HRA services for 2022-23, as set out in Appendix 2 to the report, be approved.

4.     That a 3% 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, 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 Council owned over 5,200 council houses which it rented to tenants who qualified for social housing.  The Housing Revenue Account (HRA) was the ring-fenced account within which the Council recorded the rental income and expenditure for its operations as landlord to its tenants and for the day-to-day management, repairs and maintenance of the Council’s housing stock.

The Executive considered a report that outlined the proposed Housing Revenue Account (HRA) budget for 2022-23, which was built on the estimates and assumptions in the updated 2022 HRA Business Plan.  The business plan was drawn up in line with the 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 operating environment.  The Lead Councillor for Resources introduced the report.

Council rents were set by the Regulator of Social Housing in the form of the Rent Standard. The Rent Standard was set by the Secretary of State on the 25 February 2019 and introduced following a four year period between April 2016 and April 2020 where rents were reduced by 1% per annum under the Welfare Reform and Work Act 2016.  It was recommended to the Executive that rent for 2022-23 should increase by 4.10% which was the total of the annual September 2020 to September 2021 Consumer Price Index (CPI) of 3.10% plus 1%.  This approach was in line with the Rent Standard.

A 3% increase in garage rents was proposed which was in line with the wider Council policy on fees and charges set by the Executive in November 2021.

The significant expenditure budget for housing maintenance and housing stock was set out in Appendix 1 of the report. The investment followed the publication the government’s Charter for Social Housing that set out the standard that should be expected by tenants including strengthening communities and tenant involvement in decisions about their homes. There would be improved monitoring of aspects such as fire safety provision and efforts to reduce ant-social behaviour. There would be additional support for vulnerable tenants notably in terms of advice on matters such as benefits. There would be measures undertaken to equip the Council’s housing stock for the climate emergency included energy efficiency initiatives. Finally, the Council would invest in a new housing management software system.  

The proposed investment programme for the properties that were managed within the HRA were set out within the Capital and Investment Strategy. The investment would include fire safety work, the replacement of 600 kitchens and bathrooms together with electrical work to meet the Decent Homes Standard, a major refurbishment of void properties to bring them back into use, various structural and roofing work and central heating upgrades. 

The updated HRA business plan was set out in Appendix 3 projecting to the next 30 years.  The plan had set out the intention to repay and not re-finance that variable rate loan that would mature in 2022. The HRA would retain a significant amount of reserves over the time period of the business plan which would mean that the Council could meet its commitments without extending the loan or any additional borrowing.

The Lead Councillor for Resources said that the Council’s investment programme was significant and very good news for tenants.

The proposed Housing Revenue Account (HRA) budget for 2022-23 was put before the Joint Executive Advisory Board (JEAB) for consideration at its meeting held on 10 January 2022. The chairman, Councillor Ruth Brothwell spoke in favour of the recommendations set out in the report. The comments of the JEAB were set out in full in the Supplementary Information Sheet.

Consequently, the Executive

RESOLVED:

(1)  That the initiatives, services and budgets as set out in the report submitted to the Executive and in Appendix 1 to the report, be approved.

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

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

(b)  to set rents accordingly.

The Executive also made the following recommendations to Council (9 February 2022):

(1)  That the proposed HRA revenue budget for 2022-23, as set out in Appendix 1 to the report, be approved.

(2)  That a rent increase of 4.10%, comprising the September 2021 CPI (3.10%) plus 1% in line with the Direction on the Rent Standard 2019 and as set out within Guidance provided by the Regulator of Social Housing, be implemented.

(3)  That the fees and charges for HRA services for 2022-23, as set out in Appendix 2 to the report, be approved.

(4)  That a 3% 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; this is consistent with the objectives outlined in the HRA Business Plan.