Agenda item

To receive a report on the recommendations of Cabinet referred to Council in relation to the Revenue Budget Proposals 2021-22 – Housing Revenue Account (HRA)

 

(Councillor Carter here left the meeting due to his disclosable pecuniary interest as set out at Minute CO66 above.)

 

Dawn Garton, Director for Corporate Services introduced the report, providing a brief summary and highlighting the proposed rent increase of 1.49% average for all Council dwellings, which was in line with Government limitations placed on the Council as a social landlord.  The budget maintained the working balance at the agreed level of £750k, progressing a number of the items that were agreed as part of the Housing Improvement Programme (HIP).  Key to the Council’s financial sustainability with regard to the HRA was work on development of the HRA business plan, (including stock condition surveys, which would indicate capital and revenue works needed and the draw on reserves to meet these needs), which would project forward over a 30 year period of likely rent increases, costs etc.  Co-ordinating expenditure with income was an important part of the process and would improve the Council’s position to understand the financial health of the HRA.

 

The Director for Housing and Communities highlighted that the adoption of the Council’s Rent Setting Policy had provided a framework for this work and the proposed rent increase was consistent with the Policy.  The increased transparency on service charges, with grounds maintenance and health and safety charges clearly identified on the rent increase notice to tenants.  There were carry forwards in relation to the HIP works as a result of the impact of Covid-19 on contractors and the suspension of some works due to tenant vulnerability.  The adoption of a Void Policy and improved reporting of void performance showed the Council’s commitment to improvements in this area.  Delivery of the HRA business plan would involve collating tenant views to help inform the Council’s 30 year business plan, with a clear programme of works for the next five years to benefit tenants and the Council.

 

Councillor de Burle thanked the Director for Corporate Services and Director for Housing and Communities and moved the recommendations.  Councillor Orson seconded the motion and reserved his right to speak.

 

During debate the following points were noted:

 

·         Members supported the proposals, commenting that the work undertaken to improve the Council’s Housing service was a good news story

·         Members thanked officers and Scrutiny Committee for their work to improve the Housing service, particularly in relation to the voids management process.

·         Improvements to the Housing service offered a learning opportunity to enhance other areas within the Council.

·         Members were pleased that the Council was maximising its rental income and service charge income.  This was important for financial stability and to enable improvement work to continue and tenant living standards to be maintained.

·         Officers had implemented Members’ service charge requests.  Councillor Pearson had led on and been a key participant of the HIP & Councillor Orson had been heavily involved as well.

·         Members noted the challenges faced as a result of the pandemic and future challenges due to carbon neutral requirements, regulator standards, landlord health and safety etc.

·         Members noted the considerable work undertaken by the Chief Executive and Director for Housing and Communities.

·         The bad debt provision of £373k was based on estimates (historic debt levels, the age of debts, their collection and recovery) and was in line with audit expectations.  There was much uncertainty due to Covid-19 and how the end of support for those on furlough or the self-employed may change recovery levels.

·         The good work undertaken by the Council at Westview, Somerby was noted.

·         It was important to value affordable housing and work to reduce housing costs, expensive energy bills and debt, as this would create a healthy economy in Melton.

 

RESOLVED

 

Council:

 

1)    APPROVED the budget estimates for 2021-22;

 

2)    APPROVED an average rent increase of 1.49% for all Council dwellings for 2021/22 with effect from 1 April 2021;

 

3)    APPROVED that the working balance be maintained at the approved minimum balance of £750,000 and any residual amounts be transferred to the Regeneration and Development Reserve, as approved in February 2020 for the current year.

 

The above resolution was voted for as follows:

 

FOR THE MOTION (22)

Bindloss, Browne, Chandler, Child, Cumbers, de Burle, Douglas, Evans, Faulkner, Freer-Jones, Glancy, Graham, Hewson, Higgins, Holmes, Illingworth, Lumley, Orson, Posnett, Pritchett, Steadman, Wilkinson.

 

AGAINST THE MOTION (0)

 

ABSTAINING FROM THE MOTION (0)

 

(Councillor Carter here re-entered the meeting.)