Agenda item

To receive the joint report of the Executive Director of Finance, Resources and Customer Services and Executive Director of Regeneration and Environment presenting for approval the revenue estimates of the Housing Revenue Account (HRA) for 2017/18 and the updated position on the HRA 30 year business plan.                                                               (Report No: 195)

(Key Decision – Reference No: 4451)

Members are asked to note that the recommendations in the report were endorsed and approved for recommendation onto Council by Cabinet on 8 February 2017.

Councillor Ahmet Oykener proposed and Councillor Pite seconded the report of the Executive Director of Finance, Resources and Customer Services and the Executive Director of Regeneration and Environment presenting for approval the revenue estimates of the Housing Revenue Account (HRA) for 2017/18 and the updated position on the HRA 30 year business plan.   (Report No:  195)

NOTED

1.               That the recommendations in the report had been endorsed and approved for recommendation onto Council by Cabinet on 8 February 2017. 

2.               The plan had been written at a time when resources were tightly constrained and there was much uncertainty about Government housing policy, including proposals about the enforced sale of high value voids. 

3.               Thanks to the officers who had worked so hard on the housing revenue account and producing the plan, making their way through the complexities of changing legislation.

4.               The one percent reduction in Council house rents, while good for tenants, had caused problems for the Council who were to receive millions less in housing income.  Increases in service charges had been discussed with the Customer Voice who had welcomed the better services.   Gas charges would stay the same or reduce but electricity costs were due to increase by 16% as a result of Brexit. 

5.               Capital funding of £234.8m had been set aside for major works and estate renewal schemes.

6.               Concerns about the many vulnerable people for whom housing was an issue and praise for the work being done to provide more housing despite constraints.  

7.               Concerns of the Opposition in relation to: 

a.     Whilst supporting the rises in gas and electricity which were due to market volatility, concern in relation to the 8% increase in service charges.

b.     The 5 year capital programme in the light of lack of progress on previously approved spending.  That there has been substantial slippage needs to be recognised and addressed in any future works.  The programme cannot be endorsed.

c.     Looking at numbers of homes that have actually been completed, many of these were part of the Highlands development, started under the Conservative administration, very few have been provided by the Labour administration. 

d.     About the spiralling need for temporary accommodation which has been inadequately addressed with very few new houses provided for social rent.

8.               The response from the Cabinet Member for Housing and Estate Regeneration that the Council had been able to redefine the meaning of affordable rent (defined as 80% of marketable local rent under the Government) into a more meaningful figure – a real affordable rent - based on local housing elements.  The numbers of housing units quoted did not include the many built by partners such as the Notting Hill Housing Trust. 

AGREED

1.               To approve the Housing Revenue Account (HRA) 30-Year Business Plan.

2.               To approve the detailed HRA revenue budget for 2017/18.

3.               To approve the HRA Capital Programme and Right to Buy (RTB) One for One Receipts Programme 2017/18 to 2021/22.

4.               To note the rent levels for 2017/18 for HRA and temporary accommodation properties.

5.               To approve the level of service charges for 2017/18 for those properties receiving the services.

6.               To approve the heating charges for 2017/18 for those properties on

communal heating systems and the proposed mid-year review.

7.               To approve of the proposals for increases in garages and parking bay

rents.

8.               To delegate authority to the Cabinet Member for Housing and Housing

Regeneration and the Executive Director of Regeneration and Environment to approve tenders for Major Works.

Councillors Stewart and Maguire declared disclosable pecuniary interests in this item in relation to their employment at Unison.