Cabinet member for Finance
Decision:
It was RESOLVED: -
1.1 That the HRA Budget proposals for 2022/23 set out in the report be endorsed for recommendation to Council on 21 February 2022.
1.2 That the CPI + 1% increase of 4.1% in Council House rents, equivalent to an average rent increase of £3.72 a week for social rents and £5.23 a week for affordable rents be implemented.
1.3 That garage rents were kept at the same level as 2021/22.
1.4 That Sheltered Housing service charges were kept at the same level as 2021/22.
1.5 That Sheltered Housing utility charges were kept at the same level as 2021/22.
1.6 That the budgeted surplus of £511k be transferred to the Strategic Priorities reserve in 2022/23
1.7 That in principle, Right to Buy (RTB) receipts should be retained to enable continueddevelopment and acquisition of new council dwellings.
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 for recommendations to Council.
Alternative Options Considered and Rejected:
The Housing Revenue Account Budget for 2022/23 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 Interests Declared: None
Any Dispensation Granted: None
Minutes:
82.1 The Cabinet Member for Finance, Councillor Barrett introduced the report and proposed that the recommendation was voted on block.
82.2 Councillor Barrett proposed the recommendation in the report, which was seconded by Councillor Osborne.
82.3 Councillor Arthey queried if the cost for the work for garage sites was specified in the report and the Cabinet Member for Housing responded that this was not identified as separate item but covered by existing resources and that a report would come forward shortly.
82.4 In response to Members’ questions regarding supporting tenants in relation to the increase in rent, the Cabinet Member for Finance detailed the number of tenants receiving financial support and the SRP Operations Manager detailed the level of support some tenants were entitled to receive.
82.5 Councillor Ward stated that the raised of 4.1% in tenant rents was based on the CPI from a couple of months ago, which was lower than now. A council tax rebate would be proposed by the Government soon.
82.6 Councillor Busby referred to the chart for interest payable on page 88 and queried if the interest payment remained the same for the next two years and the Cabinet Member for Finance confirmed that it was a Public Works Loan Board (PWLB) fixed term loan interest payments and would remain the same.
82.7 The Assistant Director for Housing responded to Members’ questions regarding the Council’s garage sites and potential developments. A garage site review was being undertaken and any necessary work would be funded out of the Building Service Budget. The garage site review would be brought to Cabinet in due course.
82.8 Councillor Arthey reiterated that the Council continue to look at garage sites and the issue of parking on some council estates, he was concerned that nothing would be done to address these issues until 2023/24 and the Assistant Director for Housing responded that it was possible if there was a requirement and if there was sufficient funds in the capital work programme.
82.9 The Cabinet Member for Finance stated that if the development of a garage site for housing was identified then the cost would come out of the general HRA budget and would not necessarily require a report to Cabinet and could be taken by delegated officer decision.
82.10 Councillor Ward posed several questions including if the Council was still paying for temporary hotel accommodation, and that the valuation of the Council’s housing stock was based 38% of the market value, but where did the figure of 38% come from. He also queried the Right to Buy receipts.
82.12 She then stated that the current income from the Right to Buy receipts were at £2.9m and that the Council had committed to £3.34m. Any underspend would be given back to Government after five years if receipts had not been spent in time.
82.13 The Assistant Direct for Corporate Resources advise Members that the guidance was to use the 38% of the market value for the Housing stock.
It was RESOLVED:-
1.1 That the HRA Budget proposals for 2022/23 set out in the report be endorsed for recommendation to Council on 21 February 2022.
1.2 That the CPI + 1% increase of 4.1% in Council House rents, equivalent to an average rent increase of £3.72 a week for social rents and £5.23 a week for affordable rents be implemented.
1.3 That garage rents are kept at the same level as 2021/22.
1.4 That Sheltered Housing service charges are kept at the same level as 2021/22.
1.5 That Sheltered Housing utility charges are kept at the same level as 2021/22.
1.6 That the budgeted surplus of £511k be transferred to the Strategic Priorities reserve in 2022/23.
1.7 That in principle, Right to Buy (RTB) receipts should be retained to enable continued development and acquisition of new council dwellings.
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 for recommendations to Council.
Supporting documents: