Decision details

To recommend to Council the proposed Housing Revenue Account budget and associated capital programme for 2007/2008.

39/2007 The Cabinet recommended to Council on 1 March 2007 for approval: (i) The proposed Revenue and Capital Budgets for 2007/08 for the Housing Revenue Account, inclusive of an average rent increase of £2.95 per week (based upon 50 collection weeks and equating to an increase of 4.84%); (ii) That commencing 1 April 2007 the rent level of any new void property be adjusted to its in year target rent level under rent restructuring requirements; (iii) That from 2008/2009 to 2011/2012 inclusive, the rent increases for properties that will not reach target rent by 2012 be increased by the maximum amount allowed under the rent restructuring policy i.e. Retail Price Index plus 0.5% plus £2 per week; (iv) That service charges for 2007/2008 reflect the costs incurred in providing that service, and that where controllable, the average cost increases by no more than inflation (3.6%, that being the Retail Price Index [all items] for September 2006) plus 0.5% over that charged in 2006/2007; (v) The proposed increase in garage rent charges by 3.6%, that being the Retail Price Index (all items) for September 2006; (vi) That a further £1 million is allocated from Housing Revenue Account working balances to bring forward works to achieve Decent Homes Standard in 2007/2008.

Under the terms of the Local Government and Housing Act 1989 the Council should set a balanced budget for the Housing Revenue Account, whilst taking into account a review of housing stock rent levels on an annual basis in line with government directives on rent restructuring. The council must also implement programmes of work to ensure that all of its housing meets the Decent Homes Standard by December 2010.