Decision details

To consider a report of the Cabinet Member for Housing detailing Government plans to introduce a new funding system for the Housing Revenue Account in the year ahead and advising members of the key features of the new self financing regime, the likely impact for our tenants and related services and the key assumptions that will underpin the development of the 30 year HRA business plan.  In addition the report will seek approval for a number of schemes in the 2012/13 capital investment programme and to agree recommendations on some of the key policy issues for the introduction of self-financing, e.g. treasury management, approach to setting rents and service charges

To consider and agree the recommendations to Council. 

To enable preparation of the 30 year Housing Revenue Account (HRA) business plan and to ensure proper arrangements are in place for the implementation of the new financial regime for Council housing,

The introduction of the new financial regime is a legislative requirement.  It will start on 1 April 2012 assuming that the Localism Bill receives Royal Assent in time.  The capital spending plans set out for 2011/12 to 2015/16 are consistent with the priorities approved in the HRA outline business plan approved by Council in July 2011.  The recommendations for the key principles that underpin the detailed business plan could be varied but the ones recommended are considered best for the long term viability of the HRA and also to protect the General Fund (GF) from any adverse financial impact from the borrowing that needs to take place.