Issue - meetings
Housing Revenue Account Capital and Revenue Budgets 2017/2018
Meeting: 07/02/2017 - Cabinet (Item 6)
6 Housing Revenue Account Capital and Revenue Budgets 2017/2018 
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Additional documents:
Minutes:
Background:
This report provided details of the proposed Housing Revenue Account (HRA) capital and revenue budgets for 2017/2018 including rent, garage rent and service charge levels. The report gave a breakdown of the factors taken into account in terms of formulating the budgets for 2017/2018.
The report provided an update on the HRA Business Plan in accordance with the requirement to ensure it met the Government’s fit for purpose criteria.
The report also stated that tenants had been informed of the proposals, as set out in section 13 of the report.
It was noted that the figures set out in the tables in paragraphs 8.6.3 and 8.6.4 of the report should have used the following convention “£x.xxx million”.
The Business Support Overview and Scrutiny Committee considered this report on 31 January 2017 and its comments were set out in an addendum report.
A Diversity Impact Assessment had been carried out on the proposed budgets as set out in Appendix D to the report.
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Decision number: |
Decision: |
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The Cabinet noted the comments of the Business Support Overview and Scrutiny Committee, in particular: a) To note that officers will explore whether equalising garage rents for council tenants and non-council tenants would lead to an increase in income.
b) To note that officers will clarify the wording in the HRA business plan about bad debt assumptions due to the roll out of Universal Credit. |
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3/2017 |
The Cabinet recommended to Council: a) A proposed rent decrease of 1% for the housing stock as set out in Appendix A (based upon 52 collection weeks).
b) A rent increase of 5% for garages.
c) That the current policy of charging higher rent where a tenant has a taxable income per annum of £60,000 be retained and no change to the threshold.
d) That the service charges and increases as set out in Appendix B to the report for 2017/18 be approved.
e) That the revenue budget for the HRA Service for 2017/18 as set out in Appendix C to the report be approved.
f) That the future provision for the repayment debt be based on annuity based payment as opposed to minimum revenue payment of 2% on the HRA opening outstanding debt.
g) To use remaining allowable balance of 1-4-1 capital receipts (for the capital receipts received during 2017/18 from Right to Buy (RTB) sales) to be used to fund towards the 2017/18 HRA planned capital programme.
h) That Members approve the revised 30 year HRA Business Plan model as attached at appendix E to the report. |
Reasons:
The Council is required to carry out a review of rents and notify tenants not less than 28 days prior to the proposed date of change. The Council is required under the Local Government and Housing Act 1989 to ensure that the Housing Revenue Account does not fall into a deficit position.