Agenda item

Report of the Cabinet Member for Housing and Sustainability seeking approval for the Housing Revenue Account (HRA) budget proposals and long term business plan to be recommended to the budget setting meeting on 10 February 2016 including:
- the proposed 2016/17 HRA revenue estimates, together with proposed rent  and service charge levels;
- the updated HRA capital programme for the period to 2020/21 and
- the 30 year long term HRA business plan covering both capital and revenue projections, attached.

The report of the Cabinet Member for Housing and Sustainability was submitted seeking approval for the Housing Revenue Account (HRA) budget proposals and long term business plan including: the proposed 2016/17 HRA revenue estimates, together with proposed rent and service charge levels; the updated HRA capital programme for the period to 2020/21 and the 30 year long term HRA business plan covering both capital and revenue projections. In moving the report, with the consent of the Mayor, Councillor Payne, seconded by Councillor Furnell, amended the report recommendations as follows:

Amend recommendation (iii) add at the beginning ‘Other than in the circumstances set out in recommendation (iv) below’

Add new recommendation (iv):

(iv)  To delegate authority to the Chief Operating Officer, in consultation with the Cabinet Member for Housing & Sustainability, and following discussions with tenants’ representatives, to implement from 1 April 2016 a rent increase of up to 0.9% (September 2015 Consumer Price Index +1.0%) for dwellings where a Government exemption is applied to the requirement in the Welfare Reform and Work Bill 2015/16 for a 1.0% reduction in the level of Social Rent with a view to additional sums raised being reinvested in the properties affected.

Amended recommendations (iii) and (iv) to read:

(iii)  Other than in the circumstances set out in recommendation iv) below, to approve that, from 1 April 2016, a standard decrease should be applied to all dwelling rents of 1.0%, as set out in paragraph 16 of this report, equivalent to an average decrease of £0.87 per week in the current average weekly dwelling rent figure of £86.81.

(iv)  To delegate authority to the Chief Operating Officer, in consultation with the Cabinet Member for Housing & Sustainability, and following discussions with tenants’ representatives, to implement from 1 April 2016 a rent increase of up to 0.9% (September 2015 Consumer Price Index +1.0%) for dwellings where a Government exemption is applied to the requirement in the Welfare Reform and Work Bill 2015/16 for a 1.0% reduction in the level of Social Rent with a view to additional sums raised being reinvested in the properties affected.

Remaining recommendations renumbered (v) to (xiii)

UPON BEING PUT TO THE VOTE THE AMENDMENT WAS DECLARED CARRIED.

UPON BEING PUT TO THE VOTE THE MOTION AS AMENDED WAS DECLARED CARRIED.

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 and also the broad support for the proposals received at the Tenants’ Winter Conference be noted;

(ii)  that it be noted that the consultation feedback had been taken into consideration by Cabinet and had informed their final budget proposals;

(iii)  that other than in the circumstances set out in recommendation iv) below, approval be granted that from 1 April 2016, a standard decrease should be applied to all dwelling rents of 1.0%, as set out in paragraph 16 of the report, equivalent to an average decrease of £0.87 per week in the current average weekly dwelling rent figure of £86.81;

(iv)  that delegated authority be granted to the Chief Operating Officer, in consultation with the Cabinet Member for Housing and Sustainability, and following discussions with tenants’ representatives, to implement from 1 April 2016 a rent increase of up to 0.9% (September 2015 Consumer Price Index +1.0%) for dwellings where a Government exemption is applied to the requirement in the Welfare Reform and Work Bill 2015/16 for a 1.0% reduction in the level of Social Rent with a view to additional sums raised being reinvested in the properties affected;

(v)  that the Executive’s savings proposals, as set out in Appendix 1 to the report, which amount to £4,311,000 in 2016/17 and £4,439,000 in subsequent years be approved;

(vi)  that the following weekly service charges from 1 April 2016 based on a full cost recovery approach be noted:

·  Digital TV £0.42 (unchanged from 2015/16)

·  Concierge monitoring £1.20 (unchanged from 2015/16)

·  Tower Block Warden £4.97 (unchanged from 2015/16)

·  Cleaning service in walk-up blocks £0.63 (unchanged from 2015/16)

(vii)  that the new service charging model for Community Alarm and private Careline customers set out in paragraphs 37 and 38 of this report be noted;

(viii)  that it be noted that the charges to Council tenants for garages and parking spaces for 2016/17 would be unchanged and that there would be an increase of garage rents by £1.00 per week for private residents;

(ix)  that the Housing Revenue Account Revenue Estimates as set out in the Appendix 2 to the report be approved;

(x)  that the revised Housing Revenue Account 5 Year Capital Programme set out in Appendix 3 to the report  be approved and the key variances and issues in Appendix 4 to the report be noted;

(xi)  that the 30 year Business Plans for revenue and capital expenditure set out in Appendices 5 and 6 to the report respectively.be approved;

(xii)  that the HRA Business Plan - Planning Assumptions, as set out in Appendix 7 to the report be noted; and

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