Issue - meetings

Housing Revenue Account (HRA) Revenue and Capital Budgets 2019/2020 and Rent and Service Charge Setting

Meeting: 05/02/2019 - Cabinet (Item 7)

7 Housing Revenue Account (HRA) Capital and Revenue Budgets 2019/2020 pdf icon PDF 869 KB

Additional documents:




This report provided details of the proposed Housing Revenue Account (HRA) capital and revenue budgets for 2019/2020 including rent, garage rent and service charge levels. The report gave a breakdown of the factors taken into account formulating the budgets for 2019/2020.


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 31 January 2019 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:


The Cabinet considered the comments of the Business Support Overview and Scrutiny Committee in bringing this report forward for approval.


The Cabinet recommended the following to Full Council on 21 February 2019 for approval:


a)    A proposed rent decrease of 1% for the housing stock as set out in Appendix A to the report (based upon 53 collection weeks) with effect from 1 April 2019.


b)   A proposed average rent of £82.47 per week based on a 53 week rent cycle be agreed for the six new build one bedroom bungalows at Petham Green Twydall (estimated let date Autumn 2019).


c)    The baseline garage rent for Council tenants be increased by £1 from £8.12 to £9.12 with effect from 1 April 2019 per week.


d)   A rent increase for all garage tenure types of 5% will be applied with effect from 1 April 2019 per week.


e)    To approve the service charges and increases as set out in Appendix B to the report for 2019/20.


f)     To approve the revenue budget for the HRA Service for 2019/20 as set out in Appendix C to the report.


g)   To approve the proposed capital budget of £3.3m for the fourth phase of new build programme on various garage sites to be funded from borrowing and 1-4-1 capital receipts as set out in section 8.6.4 of the report.


h)   To approve the provision for the repayment debt based on annuity based payment on the HRA outstanding debt to be £0.326m for 2019/20.


i)     To approve the revised 30 year HRA Business Plan model as attached at Appendix D to the report.




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.