Issue - meetings

The Portfolio Holder for Corporate Finance and Resources to submit a report providing Members with information on the provisional year end for the Housing Revenue Account (HRA) position, subject to external audit approval for 2019/20 and provide information on the implications of the Council’s balances and reserves.

Cabinet NOTED the provisional year end position, variations to the 2019-20 estimated year end position and the resultant effect on the Council’s balances and reserves for the Housing Revenue Account.

Dawn Garton, Director for Corporate Services introduced the report, the purpose of which was to provide Members with information on the provisional year end for the Housing Revenue Account (HRA) position, subject to external audit approval for 2019/20 and to provide information on the implications of the Council’s balances and reserves.

Mrs. Garton highlighted that performance of individual budgets, including budget holder comments on significant variations was detailed at Appendix A of the report.  The Housing Revenue Account (HRA) had been underspent by £496k and the table at paragraph 9.4 of the report showed the impact of this on the HRA reserves and balances.  This was an improved position but the Council faced challenges on this budget in relation to COVID-19 and rent recovery.  No Government funding had been received on the HRA.  The HRA Business Plan would provide further information on the HRA position over a long-term period.

The Director for Housing and Communities advised that the Council had significant  ambitions for its housing service and Housing Improvement Programme.  The impact of COVID-19 on tenants was in respect of rental income and service chares, which funded the landlord function and improvement to housing stock and the Council would monitor and manage this risk.  The budget had been set aside for the Housing Improvement Plan and the Council would work to deliver significant capital programmes.

Councillor Ronnie de Burle, Portfolio Holder for Corporate Finance and Resources advised that the position on the HRA showed that the Council was able to meet its immediate objectives.  There was still uncertainty concerning the impact of COVID-19 but possibly to a lesser extent than on the General Fund.  The HRA Business Plan was an essential tool to understanding viability long-term.internal recgaes – staff time biuing costs – budget holder can nt influence they just fget their apportioned share of them.

During discussion, the following points were noted:

·         Members thanked the Director for Corporate Services for the work undertaken.

·         It was noted that ‘uncontrollable costs’ related to internal recharges (staff time, building costs etc, which the budget holder was unable to influence and each budget holder received an apportioned share).

Cabinet NOTED the provisional year end position, variations to the 2019-20 estimated year end position and the resultant effect on the Council’s balances and reserves for the Housing Revenue Account.

Reason for the decision

It is important that Cabinet are aware of the financial position of the HRA in order to ensure they can make informed decisions that are affordable and financially sustainable for the HRA and the links to the business plan.