Agenda item

To receive the joint report of the Directors of Health, Housing & Adult Social Care & Finance, Resources and Customer Services presenting for approval the revenue estimates of the Housing Revenue Account (HRA) for 2014/15 and the updated position on the HRA 30 year business plan.

(Report No.179A)

(Key Decision – Reference No.3855)

Members are asked to note that the recommendations in the report were endorsed and approved for recommendation onto Council by Cabinet on 12 February 2014.

Councillor Oykener moved and Councillor Georgiou seconded the joint report of the Director of Health, Housing and Adult Social Care & Director of Finance, Resources and Customer Services (No.179A) presenting for approval the revenue estimates of the Housing Revenue Account (HRA) for 2014/15 and the updated position on the HRA 30 year business plan.

NOTED

1.      The recommendations set out in the report had been endorsed and recommended to Council at the Cabinet meeting held on 12 February 2014.

2.      The background to the proposed rent charges for 2014/15, as detailed within section 5 and Appendix 5 of the report.  The 2014/15 rent level had been subject to an average increase of 4.6% but this had been in line with national social housing rent policy and compared well with other local authorities.  The increase also reflected the continued convergence towards formula rents by 2015/16.

3.      The background to the proposed service charges for 2014/15, as detailed within section 6 of the report.

4.      The Housing Revenue Account Business Plan had been updated to reflect the new level of rents and service charges and progress on delivery of the estate renewal and decent homes programme.

5.      The efficiencies achieved in relation to the reduction in Enfield Homes Management fee for 2014/15, as detailed within section 14 of the report.

6.      No change was being proposed in relation to Temporary Accommodation rents for 2014/15, as detailed within section 10 of the report.

7.      Whilst supportive of the recommendations within the report (recognising the convergence towards formula rents), concerns were raised by the Opposition Group regarding:

a.      the increase in borrowing identified in relation to the HRA Capital Programme  and Government cap, particularly in relation to the affordability of the proposals for investment in the private rented sector approved by Cabinet (12 February 14); and

b.      following on from a. above, the overall approach towards dealing with the increasing demand and cost on Temporary Accommodation and need to consider a wider range of alternative options, including a council house building programme and working more closely with other local authorities to free up additional land for development.

8.      In response to the concerns raised under 7. above, the Deputy Leader highlighted a need to recognise the work undertaken by the Council to tackle the number of households within Temporary Accommodation and impact of the Government’s welfare reform programme and funding allocation in terms of creating additional pressure.  The proposals for investing in the private sector had been subject to detailed financial modelling and designed as an option for addressing these pressures.

9.      The thanks to Council officers for their support and efforts in delivery of the budget proposals alongside the key achievements in relation to the housing service.

Following a further period of debate the recommendations in the report were approved, without a vote.

AGREED

(1)    To approve the detailed revenue estimates of the Housing Revenue Account for 2014/15

(2)    That the rents be increased in line with national social rent policy. This would result in an average increase of 4.6% for Enfield tenants.

(3)    That all void properties be re-let at target rent.

(4)    The level of service charges for 2014/15 as set out in paragraph 6.1 of the report for those properties receiving the services.

(5)    The proposals for increases in other income for 2014/15, as detailed in Appendices 2 and 11 of the report.

(6)    The Temporary Accommodation rents for 2014/15, as set out in Appendix 6 of the report.

(7)    The total HRA capital programme of £63.3m.

(8)    To note that Cabinet agreed authority should be delegated to the Cabinet Member for Housing and the Director of Health, Housing and Adult Social Care to approve tenders for Decent Homes and General Works.