Decision details

REVENUE BUDGET PROPOSALS 2019-20 - HOUSING REVENUE ACCOUNT (HRA)

Decision Maker: Place Committee

Decision status: For Determination

Is Key decision?: No

Is subject to call in?: No

Decisions:

The Corporate Services Manager submitted a report regarding the settings of the rents of Council dwellings, approval for thee HRA estimates for 2019-20 and the setting of the working balance for 2019-20.

 

The Corporate Services Manager, highlighted 3.1 (b) of the report in that following the budget in 2015 social rents were  reduced by 1% resulting in rents in 2019/2020 being £310k less than they could be bringing the average rent to £74.20 per week.  However, a recent consultation paper on rents has been issued which suggests that from 2020-2021 rents will be able to increase once again by CPI + 1%.  This is reflected in Appendix A.

 

The Corporate Services Manager brought members attention to section 3.3 of the report highlighting that there has been an increase in arrears from the move to Universal Credit which could be critical to the business plan as 45% of MBC tenants are claiming Universal Credit.  In the period April to September 2018 the number of MBC tenants in receipt of Universal Credit in arrears increased from 83 to 148; the majority of new rent accounts do not receive payment until week 6 at the earliest. 

 

There is a continuing contribution of £80k in 2019-202 to the General Fund from the HRA to support this via the ‘Me and My Learning’ scheme.

 

The Corporate Services Manager advised that budget proposals for 2019-2020 are set based on conditions known at this time however, as other priorities are developed which will impact on the HRA budgets these will be considered in conjunction with the HRA Business Plan and the Council’s Capital Strategy and will be brought back to committee in due course.

 

Councillor De-Burle proposed the recommendations and Councillor Blase seconded the motion.

 

All voted in favour.

 

RESOLVED that

 

(1)  A rent decrease of 1% for all Council dwellings for 2019-20 will take effect from 1 April 2019 and that when a property is re-let the rent continues to be brought into line with the Governments formula rent was approved;

 

(2)  The estimates for 2019-20, subject to the receipt of the limit rent Determination, were approved;

 

(3)  Delegated authority will be given to the Director for Corporate Services in consultation with the Deputy Chief Executive to amend the estimated working balance based on any changes to this determination be approved with changes reported back to committee;

 

(4)  A working balance of £963,579 budgeted for at 31 March 2020 based on a 1% rent decrease will be approved.

 

Report author: Dawn Garton

Publication date: 09/01/2019

Date of decision: 09/01/2019

Decided at meeting: 09/01/2019 - Place Committee

Accompanying Documents:

 

A to Z of Council Services