Issue - meetings

Housing Revenue Account (HRA) Revenue and Capital Budgets 2022/23 and Revenue and Service Charge Setting

 

 

Meeting: 08/02/2022 - Cabinet (Item 9)

9 Housing Revenue Account Capital and Revenue Budgets 2022/23 pdf icon PDF 382 KB

Additional documents:

Minutes:

Background:

 

This report provided details of the proposed Housing Revenue Account (HRA) capital and revenue budgets for 2022/2023 including rent, garage rent and service charge levels. The report gave a breakdown of the factors taken into account when formulating the budgets for 2022/2023. 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 25 January 2022 and its comments were set out at section 17 of the report. A Diversity Impact Assessment had been carried out on the proposed budgets, as set out in Appendix F to the report.

 

Decision number:

Decision:

The Cabinet noted the comments of the Business Support Overview and Scrutiny Committee, as set out in section 17 of the report.

15/2022

The Cabinet recommended the following to full Council for approval:

a)     A proposed social rent increase of 3.5% (which is below the allowed CPI of 3.1 plus 1%) for the social rent housing stock as set out in Appendix A (based on 52 collection weeks) with effect from 04 April 2022.

b)     A proposed affordable rent increase of 3.5% (which is below the allowed CPI of 3.1 plus 1%) for the affordable rent properties as set out in Appendix B (based on 52 collection weeks) with effect from 04 April 2022.

c)     A proposed rent increase of 5% to be applied to all garage tenure types with effect from 04 April 2022 as stated in section 4.

d)     That the service charges increases/decreases as set out in Appendix C of the report for 2022/23 be approved.

e)     That to allow the service charges cap of 15%, or 10 pence, whichever is the greater.

f)       That the revenue budget for the HRA service for 2022/23 as per Appendix D be approved.

g)     That the proposed new budget of £8.2m (as set out in section 8.5.3 & 8.5.4 for 2022/23) and a virement of £1.3m (in 2021/22) from phase 4 budget be approved for Phase 5 new build programme.

h)     That the provision for the repayment of debt based on annuity-based payment of £0.427m, on the HRA’s outstanding debt for 2022/23 be approved.

i)       That Members approve the revised 30-year HRA Business Plan model as attached at Appendix E.

 

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.