Agenda item

To set out and seek approval of the following for consultation with the Resources and Services Overview and Scrutiny Committee:

•           An HRA Budget for 2021/22 including the movement in HRA Balances;

•           The level of fees and charges for 2021/22; and

•           The HRA Capital Programme.

(THE PORTFOLIO HOLDERS’ JOINT REPORT WILL BE “TO FOLLOW ON” IN DUE COURSE)

RESOLVED that Cabinet –

(a)    approves a 1.5% increase in dwelling rents in 2021/22;

(b)    approves the 2021/22 Scale of Charges, as shown in Appendix B to item A.10 of the joint report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder;

(c)    approves the Housing Revenue Account (HRA) Budget for 2021/22, as set out in Appendix A to the aforementioned joint report, along with the HRA Capital Programme and the movement in HRA Balances / Reserves, as set out in Appendix C and Appendix D respectively to the aforesaid report  and

(d)    requests the Resources and Services Overview & Scrutiny Committee’s consideration of, and comments on, the HRA budget proposals for 2021/22.

The Cabinet gave consideration to a joint report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder (A.10) which set out and sought its approval of the following for consultation with the Resources and Services Overview and Scrutiny Committee:

·           a Housing Revenue Account (HRA) Budget for 2021/22 including the movement in HRA Balances;

·           the level of fees and charges for 2021/22; and

·           the HRA Capital Programme.

Members were informed that only limited changes to the HRA budget were proposed in 2021/22, pending a longer-term review of the HRA business plan during 2021.

Cabinet recalled that 2020/21 had been the first year that the Government had allowed rents to be increased following a 4-year period where they had been required to be reduced by 1% each year. In-line with rent setting guidance issued by the Regulator for Social Housing, rents were proposed to be increased by CPI + 1% in 2021/22 (a 1.5% increase) in order to continue the recovery from the foresaid 4 years of rent reductions. Therefore, the average weekly rent proposed for 2021/22 was £84.10 (£82.42 in 2020/21). Although the above increase in rents would generate additional income of £0.193m, other changes to the budget had more than offset this position with an overall deficit of £0.012m forecast for 2021/22.

Cabinet was informed that it was proposed to fund this relatively small deficit by drawing money down from the HRA General Balance, which was estimated to total £5.257m at the end of 2021/22 after taking into account that adjustment.

It was reported that the proposed HRA Capital Programme for 2021/22 totalled £3.457m and would continue to provide for a range of schemes and projects. The Capital Programme included a revenue contribution of £0.281m in order to support new build and acquisition projects. That on-going budget could either support the direct cost of projects within the capital programme or meet the borrowing costs that were likely to be required to deliver the 200 new properties the Cabinet had committed to provide.

Also discussed within the Portfolio Holders’ report was the potential to fund an increase in the level of borrowing required in order to deliver the new build projects at the speed and scale committed to.

It was felt that the HRA general balance retained a strong financial position against which the HRA 30 year Business Plan could be further developed. ‘Old’ HRA debt continued to reduce year on year as the principal was repaid with a total debt position at the end of 2021/22 forecast to be £36.777m(a reduction of £1.664m compared with the figure at the end of 2020/21).

Having considered all of the information and advice contained in the Portfolio Holders’ report:-

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

RESOLVED that Cabinet –

(a)    approves a 1.5% increase in dwelling rents in 2021/22;

(b)    approves the 2021/22 Scale of Charges, as shown in Appendix B to item A.10 of the joint report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder;

(c)    approves the Housing Revenue Account (HRA) Budget for 2021/22, as set out in Appendix A to the aforementioned joint report, along with the HRA Capital Programme and the movement in HRA Balances / Reserves, as set out in Appendix C and Appendix D respectively to the aforesaid report  and

(d)    requests the Resources and Services Overview & Scrutiny Committee’s consideration of, and comments on, the HRA budget proposals for 2021/22.