Agenda item

(Cabinet Member with Special Responsibility Councillor Warriner)

Report of Director for Communities and the Environment

(Cabinet Member with Special Responsibility Councillor Warriner)

Cabinet received a report from the Director for Communities and the Environment, which provided an update on the council housing budgetary position and sought decisions on council housing rent levels for 2019/20 and targets for future years.   The report also sought Cabinet’s approval of supporting revenue budget and capital programme proposals for referral on to Budget Council in order to complete the HRA budget setting process for 2019/20.

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

There is currently no other alternative available in respect of 2019/20 housing rent setting, given legislative requirements.

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

The options available in respect of the minimum level of HRA balances are to retain the level at £500,000 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 savings and growth proposals as set out in section 7 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) 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 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 relevant Officer preferred options are to:

·           Set housing rent levels in line with Government legislation.

·           Approve / refer on the provisions, reserves and balances position (and their use) as set out.

·           Approve / refer on the revenue budgets and capital programme, allowing for Cabinet’s recommendations regarding specific savings and growth proposals.

Councillor Warriner proposed, seconded by Councillor Pattison:-

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

Councillors then voted:-

Resolved:

(6 Members (Councillors Blamire, Clifford, Hughes, Pattison, Warriner & Whitehead) voted in favour, and 1 Member (Councillor Hanson) having previously declared an interest in the item, abstained.)

(1)          That the Housing Revenue Account Revised Budget for 2019/20, as set out at Appendix A to the report, be referred on to Council for approval, with the short-term funding requirement of £296.5K being met from unallocated balances.

(2)          That the minimum level of HRA unallocated balances be retained at £500,000 from 01 April 2019, 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 2019, average rent be set at £71.05 for 2019/20, representing a reduction of 1% from the previous year;

·         for sheltered and supported housing properties let as at 01 April 2019, average rent be set at £66.08 for 2019/20, representing a reduction of 1% from the previous year; 

·         for any relevant property becoming vacant the following policy be reaffirmed: that they be re-let at the higher ‘formula rent’ less the relevant cumulative % reduction applicable (i.e. generally 4% for 2019/20).

(4)       That the growth 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.

(5)       That subject to the above, the resulting Housing Revenue Account budget for 2019/20 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.

Officers responsible for effecting the decision:

Director for Communities and the Environment

Interim Head of Financial Services

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.