Agenda item

The Portfolio Holder for Housing and Communities to submit a report on the Revenue Budget Proposals 2020-21 – Housing Revenue Account and the proposed rent increase.

(1) Cabinet RECOMMENDED to Council the estimates for 2020/21 be approved, subject to receipt of the rent standard, with delegated authority being given to the Portfolio Holder for Housing & Communities in consultation with the Director for Corporate Services to amend the estimated working balance based on any changes to this standard;

(2) Cabinet RECOMMENDED to Council an average rent increase of 2.69% for all Council dwellings for 2020/21, with effect from 1 April 2020 and that when a property is re-let, the rent continues to be brought into line with the Government’s formula rent;

(3) That the working balance be maintained at the approved minimum working balance of £750,000, with any residual amounts transferred to the Regeneration and Development reserve;

(4) Cabinet RECOMMENDED to Council approval of a delegation to the Director for Housing and Communities in consultation with the Director for Corporate Services to access the Regeneration and Development Reserve balance for schemes and projects supporting the HAMP and in line with the HRA Business Plan;

(5) That a working balance of £750,000 be budgeted for at 31 March 2021, based on a 2.69% average rent increase;

(6) Cabinet APPROVED the new service charge for Health and Safety Works for purpose built flats in the Borough of £3.10 per week for 2020/21;

(7) That taking account of comments from Scrutiny Committee, a further comprehensive review of all potential service changes be undertaken with a view to Cabinet considering a more detailed policy by the autumn and any further charges being introduced in April 2021;

(8) Cabinet APPROVED a new electricity re-charge to tenants who make use of the new mobility scooter pods.

Councillor Alan Pearson, Portfolio Holder for Housing and Communities introduced the report, which set out the rents of Council dwellings, sought approval for the Housing Revenue Account estimates for 2020/21 and set the working balance for 2020/21.

Councillor Pearson highlighted the following amendments at 6.2 of the report:

· The surplus/deficit (-) estimated year end position for 2019/20 –

from £911,800 to £511,800.

· The working balance carry forward – from £985,250 to £1,385,250.

· Therefore the estimated year end position showed an increase to the original budget of £97,050. Of this £257,840 related to supplementary estimates completed in relation to the Housing Improvement Plan (HIP), this was reduced by savings of £160,790 over the approved budget. Items over £10k were set out in the report.

· Repairs & Maintenance overspend – from a £277k overspend to a £123k underspend.

· While there had been a significant rise in responsive repairs and voids costs in the year, the underspend on planned maintenance which allowed £450k to be transferred into the responsive repairs budget in December had continued and the need for the additional £450k, now more likely to reduce to £300k, resulted in an estimated £150k underspend.

During discussion the following points were noted:

· Councils had new powers to borrow and invest in new and existing housing and these would be explored when the Director for Housing and Communities is in post.

· The new service charging proposals were welcomed and there would be a further review of all potential service charges for Cabinet consideration in the Autumn.

· Concerning housing benefit as detailed at paragraph 6.6 of the report, referral to tenants in percentage, then in numbers was confusing.

· Funding allocated to Me and My Learning (M&ML) was noted. The work undertaken through M&ML enabled the Council to support the community (many within priority areas) to manage debt and their finances.

DECISIONS (KEY)