Issue - meetings

To set out and seek Cabinet’s approval of the final HRA budget proposals 2020/21 (including fees and charges, capital programme and movement in HRA Balances) for recommendation to Council on 11 February 2020.

RESOLVED that –

(a)    if the financial position changes prior to Council considering the HRA budget on 11 February 2020, the Chief Executive be authorised, in consultation with the Housing Portfolio Holder, to adjust the forecast / budget, including the use of reserves; and

(b)    Cabinet thanks the Resources and Services Overview and Scrutiny Committee for the work they have undertaken, and continue to undertake, in supporting the development of the forecast / budgets and agrees the comment of the Housing Portfolio Holder in response to the one comment made by the Committee as set out in this joint report.

RECOMMENDED TO COUNCIL that a 2.7% increase in dwelling rents in 2020/21, along with the detailed HRA Budget proposals for 2020/21, as set out in Appendices A to D of the Joint Report be approved.

There was submitted a joint report by the Portfolio Holder for Housing and the Portfolio Holder for Corporate Finance and Governance (A.5), which sought Cabinet’s approval of the final Housing Revenue Account (HRA) budget proposals for 2020/21, including the movement in HRA balances; the level of fees and charges and the HRA Capital Programme.

Cabinet was aware that, at its meeting held on 20 December 2019, it had considered, inter alia, the initial Housing Revenue Account Budget Proposals for 2020/21. The budget proposals at that time provided for a surplus of £0.363m that was to be contributed to the HRA Capital Programme.

It was reported that the initial budget proposals had been subject to consultation with the Resources and Services Overview and Scrutiny Committee which had met on 6 and 8 January 2020 to consider them and that Committee’s comment was set out in this joint report along with the response thereto from the Housing Portfolio Holder.

Members were advised that, since the Cabinet’s meeting held on 20 December 2019, only a very limited number of changes had been required, primarily as a result of new or revised information becoming available.

Cabinet was made aware that the changes required resulted in a revised surplus for 2020/21 of £0.281m, a change of £0.082m compared to the £0.363m surplus presented to Cabinet in December 2019. Appendix Ato the joint report provided further details across the various lines of the HRA budget. That figure could change as further adjustments might be required as part of finalising the budget for presenting to Council on 11 February 2020, with a delegation included in the Portfolio Holders’ recommendations to reflect this.

It was reported that the revised forecast surplus of £0.281m in 2020/21 had remained as a contribution to the Capital Programme (as originally set out in December 2019), albeit at a lower amount. The proposed HRA Capital Programme for 2020/21 therefore now totalled £3.457m and continued to provide for a range of schemes and projects as set out withinAppendix C to the joint report.

Members were informed that the average weekly rent remained unchanged to the figure reported in December at £82.42, an increase of 2.7% over the comparable figure of £80.25 for 2019/20.

Cabinet was advised that all other figures presented to it in December 2019 remained unchanged and included the following:

1)     the HRA general balance was forecast to total £5.029m at the end of 2020/21, which retained a strong financial position against which the Housing Strategy and associated HRA 30 year Business Plan could be developed.

2)     HRA debt continued to reduce year-on-year as principal was repaid with a total debt position at the end of 2020/21 forecast to be £38.442m(a reduction of £1.664m compared with the figure at the end of 2019/20).

Having considered the information provided in the joint report:

It was moved by Councillor P B Honeywood, seconded by Councillor McWilliams and:-

RESOLVED that –

(a)    if the financial position changes prior to Council considering the  ...  view the full minutes text for item 106