This report provided details of the proposed Housing Revenue Account (HRA) capital and revenue budgets for 2021/2022 including rent, garage rent and service charge levels. The report gave a breakdown of the factors taken into account formulating the budgets for 2021/2022. 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 16 of the report.
The Business Support Overview and Scrutiny Committee considered this report on 28 January 2020 and its comments were set out in an addendum report. The addendum report also included some updated information which had come to light since publication of the main report. A Diversity Impact Assessment had been carried out on the proposed budgets, as set out in Appendix F to the report.
The Cabinet noted the comments of the Business Support Overview and Scrutiny Committee, as set out in the Addendum Report.
The Cabinet recommended the following to full Council for approval:
a) A proposed social 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 05 April 2021.
b) A proposed affordable rent increase of CPI plus 1% for the housing stock as set out in Appendix B to the report (based on 52 collection weeks) with effect from 05 April 2021.
c) A proposed rent increase of 5% to be applied to all garage tenure types with effect from 05 April 2020 as stated in section 4 of the report.
d) That the service charges increases/decreases as set out in Appendix C to the report for 2021/22 be approved.
e) That the revenue budget for the HRA service for 2021/22 as set out in Appendix D to the report be approved.
f) That the proposed 3 year planned maintenance capital programme budget and the funding be approved as set out in sections 8.5.3 & 8.5.4 of the report.
g) To approve the reduction in 2020/21 planned maintenance underspend capital budget of £1.4m as set out in section 8.5.6 of the report.
h) That the provision for the repayment of debt based on annuity-based payment of £0.410m, on the HRA’s outstanding debt for 2021/22 be approved.
i) That members approve the revised 30-year HRA Business Plan model as attached at Appendix E 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.