Decision details

(i)  To consider the report and agree that the recommendations, as set out below, be made to Council at the meeting on 15 February 2017.

It is recommended that Council:

(i)  To thank the Tenant Resources Group for their input to the capital and revenue budget setting process and to note their endorsement of the recommendations set out in this report and also the broad support for the proposals received at the Tenants’ Winter Conference.

(ii)  To approve that, from 1 April 2017, a standard decrease should be applied to all dwelling rents of 1.0%, as set out in paragraph 18 of this report, equivalent to an average decrease of £0.86 per week in the current average weekly dwelling rent figure of £86.20.

(iii)  To note the following weekly service charges from 1 April 2017 based on a full cost recovery approach:

•  Digital TV £0.42 (unchanged from 2016/17)

•  Concierge monitoring £1.20 (unchanged from 2016/17)

•  Tower Block Warden £4.97 (unchanged from 2016/17)

•  Cleaning service in walk-up blocks £0.63 (unchanged from 2016/17).

(iv)  To note the weekly service charges for supported accommodation from 1 April 2017:

•  Call Monitoring Charge  - £1.25 (unchanged from 2016/17)

•  Careline Silver - £3.00 (unchanged from 2016/17)

•  Careline Gold - £4.25 (unchanged from 2016/17)

(v)  To note that the charges to Council tenants for garages and parking spaces for 2017/18 will increase by 1% in line with CPI as at September 2016.

(vi)  To approve the Housing Revenue Account Revenue Estimates as set out in the attached Appendix 1.

(vii)  To approve the 30 year Business Plans for revenue and capital expenditure set out in Appendices 2 and 3 respectively.

(viii)  To note the HRA Business Plan - Planning Assumptions, as set out in Appendix 4.

(ix)  To note that rental income and service charge payments will continue to be paid by tenants over a 48 week period.

1  The Council’s Constitution sets out the process to be followed in preparing the Council’s budget. This process includes a requirement for the Executive to formally submit their budget proposals for the forthcoming year to Council.  The budget proposals in this report cover the HRA revenue budget and the 30 year Business Plan.

2  In March 2012 the HRA paid a one-off levy to Government of approximately £74,000,000, known as the ‘debt settlement’, to buy its way out of the subsidy system and stop the need for annual payments. The introduction of the self-financing regime for HRA finances in April 2012 brought with it a requirement for long term business planning.  This report also sets out in financial terms the HRA Business Plan for the next 30 years.

The proposals in this report follow the key principles established in the HRA self-financing report approved by Council on 16 November 2011 and amended in subsequent budget reports. They are consistent with the views of tenant representatives expressed at various meetings during the preparations for HRA self-financing.  More recently, these matters have been discussed at the monthly meetings of the Tenant Resources Group and at the Tenants’ Winter Conference. Alternative options are not therefore supported.