Issue - meetings

(Cabinet Members with Special Responsibility Councillors John Gilbert and David Kerr)

The Corporate Director (Finance and Performance) and Head of Financial Services presented a joint report that updated the Housing Revenue Account (HRA) revised budget position for the current year and set out the recommended budget for 2008/09 and future years.  It also set out the updated Capital Programme for 2007/08 and a proposed programme to 2012/13. 

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

With regard to the Revised Budget Cabinet could consider other proposals that may influence the Revised Budget for the year and the call on revenue balances.

The options available in respect of the 2008/09 rent increase are to:

i)              Set the average housing rent at 5% as proposed in paragraph 2.3.1 to the report;

ii)             Set the rent at a lower level: this would reduce the income available to the Housing Revenue Account;

iii)           Set the rent increase at a higher level, up to 5.5%, i.e. within the Limit Rent

iv)           Set the rent increase at a level higher than 5.5%, i.e. above the Limit Rent.  Although this would generate additional income, around 60% of that income would have to be paid over to the Government through Rent Rebate Subsidy Limitation.

The options available in respect of the minimum level of HRA balances were to set the level at £350,000 in line with the advice of the Section 151 Officer, or to adopt a different level.

The options available in respect of the revenue budgets for 2008/09 to 2010/11 were to recommend the budget as set out to Budget Council for approval, or to consider other proposals for incorporation.

The options available in respect of the Capital Programme were:

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

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 very much on what supported measures Members proposed, and their impact on the Council Housing Service.  As such, a full options analysis could only be undertaken once any alternative proposals were known.  It should be noted that Officers may require more time in order to do this. 

The Officer Preferred options were to approve a 5% increase in average rents, and to approve the draft revenue and capital budgets as set out in the appendices.  These were as reflected in the recommendations of the report. 

It was moved by Councillor John Gilbert and seconded by Councillor David Kerr: -

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

By way of amendment it was moved by Councillor Jon Barry and seconded by Councillor Maia Whitelegg: -

“That the rent increase be 4.5% and the shortfall of £60,000 come from the Supervision and Management expenditure.”

Upon being put to the vote 2 Members (Councillors Jon Barry and Maia Whitelegg) voted for the amendment and 8 Members (Councillors Evelyn Archer,  ...  view the full minutes text for item 116