Cabinet Member for Finance
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 6 February 2023, Cabinet considered Paper MCa/22/42, the Housing Revenue Account Budget for 2023/24. Paper MC/22/36 includes all relevant updated information and includes the necessary recommendations.
Minutes:
100.1 The Chair invited Councillor Whitehead – Cabinet Member for Finance, to introduce report MC/22/36.
100.2 Councillor Whitehead detailed the purpose of the report and PROPOSED the recommendations contained within the report, which was SECONDED by Councillor Hadingham.
100.3 Councillor Mansel referred to section 4.9 with regard to rental income and queried the absence of purchasing tenants under the right to buy scheme. In addition, Councillor Mansel asked whether the figures of new homes reported were net gain or gross within the capital budget.
100.4 Councillor Whitehead responded that there had been approximately 20 purchases from a stock of around 3,000 houses but confirmed that due to the small but dynamic nature of purchases, it was difficult to provide an appropriate estimate. Furthermore, Councillor Whitehead confirmed that the reality of purchases meant that the figures in the capital budget would entail the need for the replacement of houses.
100.5 Councillor Field was concerned about the proposed rent increases and asked whether any other alternatives were considered.
100.6 Councillor Whitehead responded that initial conversations had leant towards CPI plus 1% increase and that due to benefits raising in line with inflation the raise was considered to be manageable.
100.7 Councillor Carter wondered what the procedure was in situations where the rent increase was not manageable to residents and whether the raise was on balance equitable to the Council should vulnerable residents require further Council interventions as a result, due to the compound impact on stress and mental health.
100.8 Councillor Whitehead appreciated the concerns raised and invited the Director for Housing to respond.
100.9 The Director for Housing revealed that the ‘Rent Sense’ software will enable housing officers to predict forthcoming rent arrears and identify struggling residents. Moreover, the Director for Housing explained that due to this optimised process, officers would then be able to concentrate on assisting the identified residents and work with colleagues in Communities and other Housing teams for a better presence for ASB and neighbourhood issues but that Housing solutions also existed for supporting residents to maximise their benefits.
100.10 Councillor Matthissen stated that the charge from the Public Realm team into the HRA was of greater benefit to the general public and questioned whether there were costs that could be charged to the General fund as opposed to the HRA.
100.11 The Director for Housing confirmed the possibility was already being explored and consultations with Operations and Finance were required before a proposal could be brought forward.
100.12 Councillor Scarff requested assurance that the Council would not trigger a governmental repayment with a 4% above base rate interest added in regard to right to buy sales, on pg.99.
100.13 Councillor Whitehead agreed that the disincentive was sufficient enough but invited the Director for Housing to clarify.
100.14 The Director for Housing confirmed a development program to process housing sale receipts but added that as a measure of last resort the Council is able to partner with local housing associations and through that process secure the nomination rights.
100.15 During the debate, concern was expressed about the 7% rent increase in comparison to the freeze on council tax but it was reasoned to be acceptable within the current short-term context.
In accordance with Council Procedure Rule 19.3, the vote was recorded as follows:
FOR |
AGAINST |
ABSTAIN |
Gerard Brewster |
Oliver Amorowson |
|
David Burn |
Terence Carter |
|
James Caston |
Austin Davies |
|
Paul Ekpenyong |
John Field |
|
Julie Flatman |
John Matthissen |
|
Jessica Fleming |
Mike Norris |
|
Helen Geake |
Penny Otton |
|
Peter Gould |
|
|
Lavinia Hadingham |
|
|
Matthew Hicks |
|
|
Barry Humphreys |
|
|
Sarah Mansel |
|
|
Andrew Mellen |
|
|
Richard Meyer |
|
|
Suzie Morley |
|
|
David Muller |
|
|
Timothy Passmore |
|
|
Stephen Phillips |
|
|
Daniel Pratt |
|
|
Harry Richardson |
|
|
Keith Scarff |
|
|
Andrew Stringer |
|
|
Roland Warboys |
|
|
Keith Welham |
|
|
John Whitehead |
|
|
|
|
|
TOTAL 25 |
TOTAL 7 |
|
By a vote of 25 for and 7 against,
It was RESOLVED:
1.1 That the HRA Budget proposals for 2023/24 set out in the report be approved.
1.2 That an increase of 7% for council house rents, equivalent to an average rent increase of £6.16 for social rent and £9.03 for affordable rent, a week be implemented.
1.3 That the CPI increase of 10.1% in garage rents, equivalent to an average rent increase of £4.86 or £4.91 (private rental), a month be implemented.
1.4 That an increase of 7% for sheltered housing service charges, equivalent to £10.83a month, be implemented.
1.5 That an increase for sheltered housing utility charges, equivalent to £27.93 a month (30% for heating and 62% for water), be implemented.
1.6 That in principle, Right to Buy (RTB) receipts should be retained to enable continued development and acquisition of new council dwellings.
The meeting was adjourned between 7.05pm and 7.12pm.
Councillor Welham left the meeting at 7.05pm.
Supporting documents: