93 MC/19/39 HOUSING REVENUE ACCOUNT (HRA) BUDGET 2020/21 AND LONGER-TERM OUTLOOK PDF 861 KB
Cabinet Member for Housing
In accordance with Council Procedure Rule 19.3, immediately after any vote is taken at a budget decision meeting of the Council the names of Councillors who cast a vote for the decision or against the decision or who abstained from voting shall be recorded in the Minutes of that meeting.
At its meeting on 10 February 2020, Cabinet considered Paper MCa/19/44, together with amendments to the Housing Revenue Account. Paper MC/19/39 now includes all the relevant updated information, together with the necessary recommendations.
Minutes:
93.1 The Chair invited Councillor Whitehead to introduce the report and to move the recommendations.
93.2 Councillor Whitehead, the Cabinet Member for Finance, began by informing Council that the HRA had been through a challenging time and had a budgeted deficit of £564k, which was funded by the Reserves. A review of Housing Services had been undertaken in 2019/20 and had identified savings efficiencies and income-generating opportunities.
93.3 Councillor Whitehead then summarised the main details in the report and advised Members that some of the key points were also included in the recommendations.
93.4 Councillor Whitehead MOVED recommendations 3.1 to 3.9 in the report, which was SECONDED by Councillor Flatman.
93.5 Councillor Mansel queried the Sheltered Housing service charges increase and asked for clarification of what that service provided.
93.6 The Assistant Director for Housing responded that it was a culmination of several utility charges for the sheltered housing service, such as the Scheme Manager and grounds maintenance. It was the intention to conduct a review of the service charges this year.
93.7 Councillor Eburne referred to the previous question and asked what measures the Council was taking to keep utility bills low for sheltered housing services.
93.8 She continued regarding investment in the Council’s social housing paragraph 6.4 and said that since the debt cap for housing had been removed, the Council was now allowed to borrow more money, but had no plans to do so. She would like to know if there were any long-term plans for borrowing to increase the Council’s social housing.
93.9 In response, Councillor Whitehead explained that the HRA Business Plan would be brought back to Council again next year and he was confident that further housing development would be included in future 30-year HRA business plans.
93.10 The Assistant Director for Housing explained, how the total utility cost was managed by Vertas and was based on actual bills received and then the cost was apportioned across the District to achieve the charges. However, PV heating panels and installation of ground source heat pumps were part of the schemes to reduce the overall costs and improve the life of residents.
93.11 In response to Councillor Carter’s question regarding mobility scooters, the Assistant Director clarified that investment was being put into storage facilities where suitable for mobility scooters, to reduce the fire risk associated with mobility scooters being stored inside flats and sheds.
93.12 Councillor Field referred to the last time the Council put up rents by CPI+1% and had been reassured by Government that clients would receive the increase from Housing Benefits and then asked Council to reduce rent for four years. He wondered if this was likely to happen again. Councillor Whitehead responded that tenants were paying less rent now, than four years ago.
93.13 Councillor Welham asked if the Council was paying more for service charges for Sheltered Housing, as more of these became de-sheltered and fewer sheltered houses were available.
93.14 Councillor Flatman responded that in some areas, Sheltered Housing units ... view the full minutes text for item 93
95 MCa/19/44 HOUSING REVENUE ACCOUNT (HRA) BUDGET 2020/21 AND LONGER-TERM OUTLOOK PDF 796 KB
Cabinet Member for Finance
Additional documents:
Decision:
It was RESOLVED:-
1.1 That the HRA revenue budget proposals for 2020/21 and the longer-term outlookset out in the report and the updates tabled at the meeting be endorsed for recommendation to Council on 27 February 2020 as detailed below.
1.2 That the HRA capital budget proposals for 2020/21 set out in Appendix A in the report be endorsed for recommendation to Council on 27 February 2020.
1.3 That the CPI + 1% increase of 2.7% in Council House rents, equivalent to an average rent increase of £2.19 a week be implemented.
1.4 That garage rents are kept at the same level as 2019/20.
1.5 That Sheltered Housing Service charges be increased by £2 per week to reduce the subsidy by £30k.
1.6 That Sheltered Housing utility charges be increased by 5% (average £0.62 increase per week).
1.7 That the budgeted deficit of £564k be transferred from the HRA Reserves in 2020/21.
1.8 That in principle, Right to Buy (RTB) receipts should be retained to enable continued development and acquisition of new council dwellings.
1.9 That the revised 30-year HRA Business Plan in Appendix B of the report 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 recommendations to Council.
Alternative Options Considered and Rejected: The Housing Revenue Account Budget for 2020/21 and longer-term 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 Declaration of Interest Declared: None
Any Dispensation Granted: None
Minutes:
The Cabinet Member for Finance introduced the report which had been reviewed by the Joint Overview and Scrutiny Committee in January 2020. Councillor Whitehead advised Members of the revisions to the figures contained in the draft budget and moved the recommendations. Councillor Flatman seconded the recommendations.
Councillor Eburne enquired what action was being taken to ensure costs were as low as possible for sheltered housing tenants. The Assistant Director for Housing advised that plans were in place for the larger Sheltered Housing schemes to upgrade heating systems and also to provide more energy efficient systems. A review was to be undertaken to consider the wider context of sheltered housing later this year.
Councillor Whitehead responded to Councillors Eburne’s comments regarding maximising the opportunities to install PV panels on Council owned properties, and advised that there had previously been complications with installing these systems in multi tenanted properties however this would be reviewed again in the future.
In response to a question from Councillor Field regarding capital spend, the Assistant Director for Housing confirmed that work would be undertaken over the forthcoming months with Cabinet Members to review the HRA business plan.
By a unanimous vote
It was RESOLVED:-
1.1 That the HRA revenue budget proposals for 2020/21 and the longer-term outlook set out in the report and the updates tabled at the meeting be endorsed for recommendation to Council on 27 February 2020 as detailed below.
1.2 That the HRA capital budget proposals for 2020/21 set out in Appendix A in the report be endorsed for recommendation to Council on 27 February 2020.
1.3 That the CPI + 1% increase of 2.7% in Council House rents, equivalent to an average rent increase of £2.19 a week be implemented.
1.4 That garage rents are kept at the same level as 2019/20.
1.5 That Sheltered Housing Service charges be increased by £2 per week to reduce the subsidy by £30k.
1.6 That Sheltered Housing utility charges be increased by 5% (average £0.62 increase per week).
1.7 That the budgeted deficit of £564k be transferred from the HRA Reserves in 2020/21.
1.8 That in principle, Right to Buy (RTB) receipts should be retained to enable continued development and acquisition of new council dwellings.
1.9 That the revised 30-year HRA Business Plan in Appendix B of the report 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 recommendations to Council.