Agenda item

To seek Cabinet’s approval of the final Housing Revenue Account (HRA) budget proposals 2021/22 (including fees and charges, capital programme and movement in HRA Balances) for recommendation to Council on 16 February 2021.

RESOLVED that –

(a)    if the financial position changes prior to Council considering the HRA budget on 16 February 2021, the Chief Executive, in consultation with the Housing Portfolio Holder, be authorised to adjust the forecast / budget, including the use of reserves; and

(b)    subject to (a) above, a 1.5% increase in dwelling rents in 2021/22 along with the detailed HRA Budget proposals for 2021/22, as set out in Appendices A to D to item A.9 of the Joint Report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder, be agreed and recommended to Full Council on 16 February 2021 for its approval.

The Cabinet gave consideration to a joint report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder (A.9) which sought its approval of the final proposals for following for onward recommendation to Full Council at its meeting due to be held on 16 February 2021:

·           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.

Cabinet recalled that, at its meeting held on 18 December 2020, it had considered the initial Housing Revenue Account Budget Proposals 2021/22. The budget proposals at that time had provided for a small deficit of £0.012m that was to be met by drawing down money from general balances. Those initial budget proposals had then been subject to consultation with the Resources and Services Overview and Scrutiny Committee, which had met on 14 January 2021 to consider them and the Committee’s comments thereon had been considered earlier in the meeting.

It was reported that since the Cabinet’s meeting on 18 December 2020, only one change had been made that related to an adjustment to the cost of a new IT system where the previous forecast had included a one-off amount on top of the on-going annual maintenance cost. As the one-off cost was to be met from the current year’s budget, this had been removed from the latest 2021/22 forecast. Consequently, that change had resulted in a small surplus for 2021/22 of £0.012m, a change of £0.024m compared to the £0.012m deficit presented to Cabinet in December 2020. Appendix A to the Portfolio Holders’ joint report set out the revised position that reflected that change.

Members were advised that this position remained subject to further adjustments that might be required as part of finalising the budget for presenting to Council on 16 February 2021, with a delegation included in the Portfolio Holders’ recommendations to respond to that possibility.

Cabinet was made aware that the revised forecast surplus of £0.012m in 2021/22 had been contributed to general balances.

Members were informed that the proposed HRA Capital Programme for 2021/22 was set out in Appendix C to the Portfolio Holders’ joint report, which continued to provide for a range of projects, including new build and initiative schemes.

It was reported that the average weekly rent remained unchanged to the figure reported in December 2020 at £84.10, an increase of 1.5% over the comparable figure of £82.42 for 2020/21.

Cabinet was advised that the HRA general balance was forecast to total £5.282m at the end of 2021/22, which retained a strong financial position against which the Housing Strategy and associated HRA 30 year Business Plan could be delivered and developed.

Members were made aware that 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’ joint report:-

It was moved by Councillor P B Honeywood, seconded by Councillor G V Guglielmi and:-

RESOLVED that –

(a)    if the financial position changes prior to Council considering the HRA budget on 16 February 2021, the Chief Executive, in consultation with the Housing Portfolio Holder, be authorised to adjust the forecast / budget, including the use of reserves; and

(b)    subject to (a) above, a 1.5% increase in dwelling rents in 2021/22 along with the detailed HRA Budget proposals for 2021/22, as set out in Appendices A to D to item A.9 of the Joint Report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder, be agreed and recommended to Full Council on 16 February 2021 for its approval.