212 BCa/19/31 DRAFT HRA BUDGET 2020/21 PDF 693 KB
Cabinet Member for Finance
Decision:
It was RESOLVED:-
1.1 That the draft HRA Budget proposals for 2020/21 and four-year outlook set out in the report be endorsed for recommendation to Council on 26 February 2020, subject to further consideration at the next Cabinet meeting on 11 February 2020.
1.2 That the CPI + 1% increase of 2.7% in Council House rents, equivalent to an average rent increase of £2.38 a week be implemented.
1.3 That garage rents are kept at the same level as 2019/20.
1.4 That Sheltered Housing Service charges be increased by £2 per week to ensure recovery of the actual cost of service.
1.5 That Sheltered Housing utility charges are kept at the same level as 2019/20.
1.6 That the budgeted surplus of £298k be transferred to the HRA reserves in 2020/21.
1.7 That in principle, Right to Buy (RTB) receipts should be retained to enable continued development and acquisition of new council dwellings.
1.8 That the revised HRA Business Plan in Appendix B be noted.
Reason for Decision: To bring together all the relevant information to enable Cabinet Members to review, consider and comment upon the Councils Housing Revenue Account budget before the February Cabinet and recommendations to Council.
Alternative Options Considered and Rejected: The Housing Revenue Account Budget for 2020/21 and four-year outlook is an essential element in achieving a balanced budget and sustainable medium-term position, therefore no other options are appropriate in respect of this.
Any Declarations of Interest Declared: None
Any Dispensation Granted: None
Minutes:
The Cabinet Member for Finance introduced the report and provided Members with details of the budget proposals laid out in the report. The recommendations were moved by Councillor Ward and seconded by Councillor Osborne.
Councillor Busby commented that he was not happy with the proposed increases in rent. The Assistant Director for Corporate Resources advised that the proposed increases were those recommended by Government and even with this increase tenants would be paying less than four years ago. Councillor Osborne confirmed that residents on a low income would be eligible to apply for an increased benefit to cover these rent increases. She went on to comment that this additional income would help to ensure that the Council could continue to provide better quality homes.
In response to a question from Councillor Parker regarding the projected number of Right To Buy properties sold, Councillor Ward confirmed that this figure had been based on previous years’ experience.
Councillor Busby enquired whether the rental income figures detailed in Appendix B of the report reflected the potential building of new council houses, or are based on existing figures. The Assistant Director for Corporate Resources confirmed that these figures are in accordance with the Capital Programme and therefore factor in numbers for proposed building plans over the forthcoming years.
By a unanimous vote
It was RESOLVED:-
1.1 That the draft HRA Budget proposals for 2020/21 and four-year outlook set out in the report and detailed below be endorsed for recommendation to Council on 26 February 2020, subject to further consideration at the next Cabinet meeting on 11 February 2020.
1.2 That the CPI + 1% increase of 2.7% in Council House rents, equivalent to an average rent increase of £2.38 a week be implemented.
1.3 That garage rents are kept at the same level as 2019/20.
1.4 That Sheltered Housing Service charges be increased by £2 per week to ensure recovery of the actual cost of service.
1.5 That Sheltered Housing utility charges are kept at the same level as 2019/20.
1.6 That the budgeted surplus of £298k be transferred to the HRA reserves in 2020/21.
1.7 That in principle, Right to Buy (RTB) receipts should be retained to enable continued development and acquisition of new council dwellings.
1.8 That the revised HRA Business Plan in Appendix B be noted.
Reason for Decision: To bring together all the relevant information to enable Cabinet Members to review, consider and comment upon the Councils Housing Revenue Account budget before the February Cabinet and recommendations to Council.