Agenda item

Report of the Cabinet Member for Housing and Sustainability seeking approval for the Housing Revenue Account budget proposals and long term business plan to be recommended to the budget setting Council meeting on 11 February 2015, attached.

The report of the Cabinet Member for Housing and Sustainability was submitted seeking approval for the Housing Revenue Account budget proposals and long term business plan (copy of report circulated with agenda and appended to signed minutes).

RESOLVED:

(i)  that the Tenant Resources Group be thanked for their input to the capital and revenue budget setting process and their endorsement of the recommendations set out in the report be noted together with the broad support for the proposals received at the Tenants’ Winter Conference;

(ii)  that the following be approved to calculate the dwelling rent increase from 1 April 2015:

·  That the standard increase applied to all dwelling rents should be 2.2% (CPI plus 1.0%), as set out in paragraph 11 of the report, equivalent to an average increase of £1.84 per week; and

·  That dwelling specific adjustments should be made to give an additional increase in average rent levels of 1.3% (£1.09 per week), subject to the total increase from both elements not exceeding £10.00 per week for any individual property, as set out in paragraph 13 of the report;

(iii)  that based on the calculation set out in resolution (ii) above, it be approved that with effect from the 1 April 2015, the current average weekly dwelling rent figure of £83.92 should increase by 3.5%, which will equate to an average increase of £2.93 per week;

(iv)  that it be noted that the actual total increase in individual rents would vary by property, as explained in paragraph 14 of the report;

(v)  that it be noted that the following weekly service charges from 1 April 2015 based on a full cost recovery approach:

·  Digital TV £0.42 (unchanged from 2014/15)

·  Concierge £1.20 (unchanged from 2014/15)

·  Tower Block Warden £4.97 (unchanged from 2014/15);

(vi)  that it be noted the new cleaning charge for walk up blocks of £0.63 per week, which was introduced from July 2014, would also be unchanged from 1 April 2015;

(vii)  that it be noted the service charges for supported accommodation would continue at the rates approved in February 2013;

(viii)  that it be noted the charges for garages and parking spaces for 2015/16 will be increased by 1.2% in line with the increase in CPI;

(ix)  that the Housing Revenue Account Revenue Estimates as set out in  Appendix 1 to the report be approved;

(x)  that the addition of £12,272,000 to the Housing Revenue Account Capital Programme for a Provision of Social Housing Scheme, funded from retained ‘right to buy’ capital receipts (30%) and borrowing (70%), as set out in paragraphs 34 to 36 of the report, be approved;

(xi)  that the revised Housing Revenue Account 5 Year Capital Programme set out in Appendix 2 to the report be approved and the key variances and issues as set out in Appendix 3 to the report be noted;

(xii)  that the 30 year Business Plans for revenue and capital expenditure as set out in Appendices 4 and 5 to the report respectively be approved;

(xiii)  that the HRA Business Plan - Planning Assumptions, as set out in Appendix 6 to the report, be noted; and

(xiv)  that it be noted that the rental income and service charge payments would continue to be paid by tenants over a 48 week period.