Issue - meetings

Housing Revenue Account (HRA) Revenue and Capital Budgets 2018/2019 and Rent and Service Charge Setting

 

 

Meeting: 06/02/2018 - Cabinet (Item 6)

6 Housing Revenue Account Capital and Revenue Budgets 2018/2019 pdf icon PDF 547 KB

Additional documents:

Minutes:

Background:

 

This report provided details of the proposed Housing Revenue Account (HRA) capital and revenue budgets for 2018/2019 including rent, garage rent and service charge levels. The report gave a breakdown of the factors taken into account formulating the budgets for 2018/2019.

 

The report provided an update on the HRA Business Plan in accordance with the requirement to ensure the Plan 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 14 of the report.

 

The Business Support Overview and Scrutiny Committee considered this report on 30 January 2018 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 E to the report.

 

Decision number:

Decision:

The Cabinet noted the comments of the Business Support Overview and Scrutiny Committee.

14/2018

The Cabinet recommended the following to Full Council on 22 February 2018 for approval:

 

a)    A proposed rent decrease of 1% for the housing stock as set out in Appendix A to the report (based upon 52 collection weeks) with effect from 2 April 2018.

 

b)   The baseline garage rent for Council tenants be increased by £1 from £6.73 to £7.73 with effect from 2 April 2018 per week.

 

c)    A rent increase for all garage tenure types of 5% will be applied with effect from 2 April 2018 per week.

 

d)   With effect from 2 April 2018 it is proposed that all new void garage lettings will be charged the same baseline rent regardless of residential tenure type (this will be £9.41 per week) for 2018/19.

 

e)    To approve the service charges and increases as set out in Appendix B to the report for 2018/19.

 

f)     To approve the revenue budget for the HRA Service for 2018/19 as per Appendix C to the report.

 

g)   To approve the provision for the repayment debt based on annuity based payment on the HRA outstanding debt to be £0.313 million for 2018/19.

 

h)   To approve the proposed three year Planned Maintenance Capital Programme as set out in paragraph 8.6.3 of the report.

 

i)     To approve the use of 30% of allowable expenditure of small third phase of new build programme from the retained 1-4-1RTB capital receipts as set out in section 8.6.4 of the report.

 

j)     To approve the use of funds for a further small third phase of new build programme from revenue reserves as set out in section 8.6.4 of the report.

 

k)    To approve the revised 30 year HRA Business Plan model as attached at appendix D 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.