Decision details

(Cabinet Member with Special Responsibility Councillor Matthews)

Cabinet received a report from the Director for Communities & the Environment that sought Cabinet’s decisions on Council housing rent setting proposals and HRA revenue and capital budget proposals for referral on to Budget Council in order to complete the HRA budget setting process for 2022/23.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

The options with regards to rent setting are set out under section 3, the maximum permitted increase being CPI+1%. By applying this increase, it allows for a budget that can deliver on the Council’s ambitions on improving housing standards and addressing the climate change emergency, whilst adhering to the Rent Standard and legislative requirements.

In relation to garage rents, the previous decision was to freeze rents for 2021/22. In order to protect current occupancy and income levels, and inline with sector benchmarking, a further 12-month freeze is recommended. Garage rents and occupancy will remain under review.

With regard to the revenue budget generally, Cabinet could consider other proposals that may influence spending in current and future years, as long as their financing is considered and addressed.

The options available in respect of the minimum level of HRA balances are to retain the level at £500K in line with the advice of the Section 151 Officer, or adopt a different level. Should Members choose not to accept the advice on the level of balances, then this should be recorded formally in the minutes of the meeting and it could have implications for the Council’s financial standing, as assessed by its external auditor.

 With regards to the additional budget proposals as set out in section 8 of the report, Cabinet should consider the costs and benefits of the proposals and whether they are affordable, in particular, over the medium to longer term.

The options available in respect of the Capital Programme are:

i)                 To approve the programme in full, with the financing as set out;

ii)                 ii) To incorporate other increases or reductions to the programme, with appropriate sources of funding being identified.

Any risks attached to the above would depend on measures Members proposed, and their impact on the council housing service and its tenants. As such, a full options analysis could only be undertaken once any alternative proposals are known, and Officers may require more time in order to do this.

The Officer Preferred Option is Option 1: Set housing and garage rent levels as set out in this report and approve the provisions, reserves and balances position (and their use); the revenue budgets and capital?programme; and all additional budget proposals as set out.

Councillor Matthews proposed, seconded by Councillor Heath:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)        That the Housing Revenue Account Revised Budget for 2022/23, as set out at Appendix A to the report, together with the resulting Capital Programme as set out at Appendix C to the report, be referred on to Council for approval.

 (2)      That the minimum level of HRA unallocated balances be retained at £500,000 from 01 April 2022, and that the full Statement on Reserves and Balances as set out at Appendix F to the report, be endorsed and referred on to Budget Council for approval.

(3)        That council housing rents be set in accordance with statutory requirements as follows:

            · for general properties let as at 01 April 2022, average rent be set at £78.24 for 2022/23;

            · for sheltered and supported housing properties let as at 01 April 2022, average rent be set at £73.49 for 2022/23;

             · for any relevant property becoming vacant the following policy be reaffirmed: that they be re-let at the higher ‘formula rent’.

(4)        That garage rents be frozen for a 12-month period (rather than increased by CPI, as per the rent setting policy established by Cabinet in January 2017) in order to protect income levels currently achieved, and in line with benchmarking across the sector.

(5)        That a delegated decision to approve the tender of 6 programmes of work (over £200k and key decisions over £250k) during 2022/23 can be made by the Chief Executive (as per 7.4 in the report) and in line with procurement rules.

(6)        That the additional budget proposals as set out at Appendix E to the report be included in Cabinet’s budget proposals for referral on to Council, noting that any approvals be met from unallocated balances.

(7)        That subject to the above, the resulting Housing Revenue Account budget for 2022/23 onwards, as set out at Appendix A to the report, together with the resulting Capital Programme as set out at Appendix C to the report, be referred on to Budget Council for approval.

(8)        That the redirection of funds within the 2021/22 HRA Capital Programme, as described in 7.3 in the report be approved.

Officers responsible for effecting the decision:

Director for Communities & the Environment

Reasons for making the decision:

The Council is required under statutory provisions to maintain a separate ring-fenced account for all transactions relating to the provision of local authority housing, known as the Housing Revenue Account (HRA). This covers the maintenance and management of the Council’s housing stock. The decision ensures there are sufficient resources to maintain and manage the Council’s Housing Revenue Account (HRA) assets.