Issue - meetings

The Portfolio Holder for Corporate Finance and Resources to provide a report to Members to:

1)    provide information on actual expenditure and income incurred on the Housing Revenue Account (HRA), compared to the latest approved budget for the period 1 April 2019 to 30 June 2019;

2)    advise that as at 30th June budget holders are forecasting an overspend of £14k on the HRA;

3)    advise that in addition to formal Quarterly reporting to Cabinet, the budget position is reported monthly at the Senior Leadership Team. This is to ensure any early warnings that highlight pressures can be collectively resolved.

DECISION (NON-KEY)

Cabinet NOTED the financial position on the Housing Revenue Account to 30 June 2019 and the year end forecast.

Reasons for recommendation:

The Council, having set an agreed Budget at the start of the financial year, needs to ensure the delivery of this Budget is achieved. Consequently there is a requirement to regularly monitor progress so corrective action can be taken when required which is enhanced with the regular reporting of the financial position.

In the absence of Councillor Ronnie de Burle, Portfolio Holder for Corporate Finance and Resources, Dawn Garton Director for Corporate Services introduced the report the purpose of which was to provide information on actual expenditure and income incurred on the Housing Revenue Account (HRA), compared to the latest approved budget for the period 1 April 2019 to 30 June 2019.

Mrs Garton provided a brief summary of the report highlighting that a £14,000 overspend was predicted as a result of a shortfall in rental income due to higher levels of void properties and an increase in leaseholder service charges.  It was confirmed that there was a significant amount of work currently being undertaken to address and improve the situation in relation to void properties.

During discussion the following points were noted:

1. The Government imposed reduction in council housing rents was due to come to an end next year.  The Governments new policy is to restrict rents to the Consumer Prices Index plus 1%, which would have a positive impact on the Housing Business Plan.  A copy of the revised policy would be provided to members.

DECISION (NON-KEY)

Cabinet NOTED the financial position on the Housing Revenue Account to 30 June 2019 and the year end forecast.

Reasons for decision:

The Council, having set an agreed Budget at the start of the financial year, needs to ensure the delivery of this Budget is achieved. Consequently there is a requirement to regularly monitor progress so corrective action can be taken when required which is enhanced with the regular reporting of the financial position.