Issue - meetings

Housing Revenue Account (HRA) Budget 2022/23

(Report CAB3334 refers)

Extract of draft minute of Cabinet to follow

RECOMMENDED:

That Cabinet recommend that Council :-

1.            Approve the 2022/23 Housing Revenue Account budget as detailed in Appendices 1 and 2 to this report.

2.            Approve the 10 Year indicative HRA capital programme as set out in appendices 3 and 4.

3.            Approve capital expenditure in 2022/23 of £9.289m for the Maintenance, Improvement and Renewal programme as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4

4.            Approve the proposed indicative funding for the HRA Capital Programme, as detailed in Appendix 5.

5.            Note the HRA Financial Plan operating account extract, including annual working balances, as detailed in Appendix 6. 

6.            Agree to support the proposal to fund £0.300m new initiatives around the Housing White Paper – “The charter for social housing residents” and invest additional resources in the capacity of the new homes delivery team, the decent homes team and Neighbourhood/Estate Management.

7.            Agree to support the proposal to increase the revenue funding for planned and reactive repairs by £0.500m to reflect both increased budget pressures and the cost of delivering an improved void standard to properties prior to letting

8.            Approve a rent increase of 3.1% from April 4th 2022 for Social and Affordable housing within the HRA.

9.            Approve a cap on service charges for 2022/23 for all tenants at £5.00 per week.

1.            That the 2022/23 Housing Revenue Account budget be approved, as detailed in Appendices 1 and 2 to report CAB3334.

2.            That the 10 Year indicative HRA capital programme be approved as set out in appendices 3 and 4 of the report.

3.            That capital expenditure in 2022/23 of £9.289m be approved for the Maintenance, Improvement and Renewal programme as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4

4.            That the proposed indicative funding for the HRA Capital Programme be approved, as detailed in Appendix 5.

5.            That the HRA Financial Plan operating account extract, including annual working balances be noted, as detailed in Appendix 6 of the report. 

6.            That the proposal to fund £0.300m new initiatives around the Housing White Paper – “The charter for social housing residents” be supported and additional resources be invested in the capacity of the new homes delivery team, the decent homes team and Neighbourhood/Estate Management.

7.            That the proposal to increase the revenue funding for planned and reactive repairs by £0.500m to reflect both increased budget pressures and the cost of delivering an improved void standard to properties prior to letting be supported.

8.            That a rent increase of 3.1% from April 4th 2022 for Social and Affordable housing within the HRA be approved.

9.            That a cap on service charges for 2022/23 for all tenants at £5.00 per week be approved.

Councillor Learney (Cabinet Member for Housing and Asset Management) moved that the recommended minute of Cabinet be approved and adopted (seconded by the Leader, Councillor Thompson).

Council noted that that the corresponding recommended minute of Cabinet held 17 February 2022 was included with the supplementary agenda after the statutory deadline. The Deputy Mayor agreed to accept the recommended minute onto the agenda, because of the urgent need for Council to consider this alongside Report CAB3334.

Council proceeded to ask questions on the matters in the recommended minute and the report.

RESOLVED:

That the recommended minute of Cabinet held 17 February 2022 (as follows) be approved and adopted:

That Council:

1.            Approves the 2022/23 Housing Revenue Account budget as detailed in Appendices 1 and 2 to Report CAB3334.

2.            Approves the 10 Year indicative HRA capital programme as set out in appendices 3 and 4 to Report CAB3334.

3.            Approves capital expenditure in 2022/23 of £9.289m for the Maintenance, Improvement and Renewal programme as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4.

4.            Approves the proposed indicative funding for the HRA Capital Programme, as detailed in Appendix 5 to Report CAB3334.

5.            Notes the HRA Financial Plan operating account extract, including annual working balances, as detailed in Appendix 6 to Report CAB3334.

6.            Agrees to support the proposal to fund £0.300m new initiatives around the Housing White Paper – “The charter for social housing residents” and invest additional resources in the capacity of the new homes delivery team, the decent homes team and Neighbourhood/Estate Management.

7.            Agrees to support the proposal to increase the revenue funding for planned and reactive repairs by £0.500m to reflect both increased budget pressures and the cost of delivering an improved void standard to properties prior to letting.

8.            Approves a rent increase of 3.1% from April 4th 2022 for Social and Affordable housing within the HRA.

9.            Approves a cap on service charges for 2022/23 for all tenants at £5.00 per week.

That it be recommended to Council* :-

1.     That the 2022/23 Housing Revenue Account budget be approved, as detailed in Appendices 1 and 2 to report CAB3334.

2.     That the 10 Year indicative HRA capital programme be approved as set out in appendices 3 and 4 of the report.

3.     That capital expenditure in 2022/23 of £9.289m be approved for the Maintenance, Improvement and Renewal programme as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4

4.     That the proposed indicative funding for the HRA Capital Programme be approved, as detailed in Appendix 5.

5.     That the HRA Financial Plan operating account extract, including annual working balances be noted, as detailed in Appendix 6 of the report. 

6.     That the proposal to fund £0.300m new initiatives around the Housing White Paper – “The charter for social housing residents” be supported and additional resources be invested in the capacity of the new homes delivery team, the decent homes team and Neighbourhood/Estate Management.

7.     That the proposal to increase the revenue funding for planned and reactive repairs by £0.500m to reflect both increased budget pressures and the cost of delivering an improved void standard to properties prior to letting be supported.

8.     That a rent increase of 3.1% from April 4th 2022 for Social and Affordable housing within the HRA be approved.

9.     That a cap on service charges for 2022/23 for all tenants at £5.00 per week be approved.

*NB recommendations to Council are not subject to call-in.

Councillor Learney introduced the report and stated that it was considered by the Scrutiny Committee at its meeting on the 15 February 2022 where a number of questions were responded to.  Members raised concerns regarding the importance of homelessness prevention and queried why this item did not specifically feature in this or the General Fund report (CAB3335).  It was confirmed that the detailed spending proposals to support homelessness prevention, which did not form part of the HRA, would be considered by the Business and Housing Policy Committee on 1 March 2022.

Cabinet noted that representatives from TACT had sent their apologies for Cabinet as they had no further queries in relation to this item following their opportunity to ask questions at the Scrutiny Committee meeting.

At the invitation of the Leader, Councillor Horrill addressed Cabinet as summarised briefly below.

Welcomed the opportunity for a full discussion of the report at Scrutiny Committee and the assurances provided in relation to homelessness prevention.  Welcomed the recommendation to limit the rent increase to 3.1% and in general supported the contents of the report, including the continued commitment to the new homes programme.  Highlighted that the approach to void turnaround should be discussed further to minimise the period properties remained unoccupied.

The Leader and Councillor Learney thanked Councillor Horrill for her support and responded to the point relating to void property turnaround.

Cabinet agreed the following for the reasons set out above and outlined in the report.

RECOMMENDED (TO COUNCIL):

1.            That the 2022/23 Housing Revenue Account budget be approved, as detailed in Appendices 1 and 2 to report CAB3334.

2.            That the 10 Year indicative HRA capital programme be approved as set out in appendices 3 and 4 of the report.

3.            That capital expenditure in 2022/23 of £9.289m be approved for the Maintenance, Improvement and Renewal programme as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4

4.            That the proposed indicative funding for the HRA Capital Programme be approved, as detailed in Appendix 5.

5.            That the HRA Financial Plan operating account extract, including annual working balances be noted, as detailed in Appendix 6 of the report. 

6.            That the proposal to fund £0.300m new initiatives around the Housing White Paper – “The charter for social housing residents” be supported and additional resources be invested in the capacity of the new homes delivery team, the decent homes team and Neighbourhood/Estate Management.

7.            That the proposal to increase the revenue funding for planned and reactive repairs by £0.500m to reflect both increased budget pressures and the cost of delivering an improved void standard to properties prior to letting be supported.

8.            That a rent increase of 3.1% from April 4th 2022 for Social and Affordable housing within the HRA be approved.

9.            That a cap on service charges for 2022/23 for all tenants at £5.00 per week be approved.

Report Ref: SC059 and CAB3334

RECOMMENDATION:

It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, ref CAB3334 which is to be considered by cabinet at its meeting on the 17 February 2022.

Report reference Report Ref: SC059 and CAB3334

Councillor Learney, Cabinet Member for Housing and Asset Management and the Corporate Head of Housing introduced the report, ref CAB3334 which set out proposals for the Housing Revenue Account (HRA) Budget 2022/23 which was available on the councils website here.

The committee was recommended to comment on the proposals within the attached cabinet report, ref CAB3334 which was to be considered by the cabinet at its meeting on 17 February 2022.

The committee proceeded to ask questions and debate the report, in summary, the following matters were raised.

·       the communication, and engagement of the welfare initiatives

·       hard to let properties and the contributing factors 

·       voids and if there was an opportunity to rework these into larger properties and communicating the new standards voids to members and tenants

·       the Housing white paper and what changes may we see

·       ensuring sufficient resource in the neighbourhood team   

·       if rents were not increased by 4.1%, what would the HRA not be able to do  

·       the sensitivity analysis of inflation rises and its impact upon services. 

·       alternatives to the investment in sewerage treatment works

·       welfare support - would unspent monies be carried over 

·       the % cost of overall repairs and could this be benchmarked

·       was there sufficient funding to tackle homelessness

·       was CALA on track to bring forward the extra care provision at Kings Barton? 

·       If housebuilding costs increase, was this plan inflation proof? 

These points were responded to by Councillor Learney and officers accordingly and  were noted by the cabinet members present at the meeting.

RESOLVED:

1.    That the report be noted

2.    That the committee wished to highlight the importance of Homelessness Prevention and that it did not specifically feature in this or the General Fund report.  

3.    That cabinet consider all the committee’s comments raised during the discussion of the agenda item.