Issue - meetings

Housing Revenue Account Business Plan

Meeting: 14/02/2012 - Cabinet (Item 8)

8 Housing Revenue Account Capital and Revenue Budgets 2012/2013 PDF 452 KB

Minutes:

Background:

This report provided details of the Housing Revenue Account (HRA) revenue and capital budgets for 2012/2013 including the impact of the new self-financing regime from 1 April 2012. The report also provided details of the proposed rent and service charges levels for 2012/2013 and provided information around rent charging inconsistencies in two areas and the proposals for correcting these.

It was noted that the proposed average rent increase would be £5.39 per week or 7.26%, whilst the average service charge (excluding supporting people eligible charges) increase would be 29p per week or 6.99%.

The Business Support Overview and Scrutiny Committee considered this report on 2 February 2012 and its views were set out in Appendix E to the report.

Decision number:	Decision:
	The Cabinet noted the recommendations from the Business Support Overview and Scrutiny Committee as presented in Appendix E to the report.
29/2012	The Cabinet recommended to Council: (i) the proposed revenue and capital budgets for 2012/2013, inclusive of an average rent increase of £5.39 per week (based upon 50 collection weeks and equating to an increase of 7.26%). (ii) That service charges for 2012/13 reflect the costs incurred in providing that service, where possible, and that where costs are not fully recovered, the uplift is such that costs can be fully recovered by 2014/15 using above inflation increases to do so as per Appendix C to this report. The average increase will be 6.99%.
30/2012	The Cabinet agreed that the application of the Warden Service charge to residents in the Annexe at Longford Court be applied over a three year period with effect from 1 April 2012 for current tenants.
31/2012	The Cabinet agreed that properties identified with “pods” at Beatty Avenue and Cornwallis Avenue to be charged for only bedrooms on the upper floors of properties from 1 April 2012 and pods, regardless of their usage, be disregarded for rent charging purposes.
32/2012	The Cabinet agreed that refunds to be made to current tenants only, who have been overcharged for rent for properties in Beatty Avenue and Cornwallis Avenue
33/2012	The Cabinet agreed the approach for rent charging for any further properties identified that have “pods” fitted, be set as described in the context of this report in the future.

Reasons:

Full Council is required to carry out an annual 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.