Issue - meetings

Housing Revenue Account (HRA) Revenue and Capital Budgets 2020/21 and Rent and Service Charge Setting

 

 

Meeting: 04/02/2020 - Cabinet (Item 7)

7 Housing Revenue Account Capital and Revenue Budgets 2020/21 pdf icon PDF 650 KB

Additional documents:

Minutes:

Background:

 

This report provided details of the proposed Housing Revenue Account (HRA)

capital and revenue budgets for 2020/2021 including rent, garage rent and service charge levels. The report gave a breakdown of the factors taken into account formulating the budgets for 2020/2021.

 

The report also 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 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 2020 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, as set out in the Addendum Report.

 

18/2020

The Cabinet recommended the following to Full Council for approval:

 

 

a)        A proposed rent increase of CPI plus 1% for the housing stock as set out in Appendix A to the report (based on 52 collection weeks) with effect from 6 April 2020.

b)        The baseline garage rent for Council tenants be increased by 30 pence per week to bring in line with non council tenants garage rent with effect from 6 April 2020.

c)        That a rent increase of 5% to be applied to all garage tenure types with effect from 6 April 2020.

d)        That the service charges increases/decreases as set out in Appendix B to the report for 2020/21 be approved.

e)        That the revenue budget for the HRA Service for 2020/21 as set out in Appendix C to the report be approved.

f)         That the proposed capital budget of £0.3m be approved for buying ex Council or/and acquiring properties from the open market to be funded from the HRA revenue reserves and 1-4-1 capital receipts as set out in section 8.6 of the report.

g)        That the provision for the repayment of debt based on annuity based payment on the HRA’s outstanding debt to be £0.340m for 2020/21 be approved.

h)        That Members 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.