Agenda item

To seek Cabinet’s approval of the final Housing Revenue Account (HRA) budget proposals 2022/23 (including fees and charges, capital programme and movement in HRA Balances) for recommendation to Council on 15 February 2022.

RESOLVED that Cabinet –

(a)    authorises the Assistant Director (Finance & IT), in consultation with the Housing Portfolio Holder, to adjust the forecast / budget, including the use of reserves, in the event that the financial position changes prior to Council considering the HRA budget on 15 February 2022;

(b)    subject to (a) above, approves and recommends to Full Council on 15 February 2022a 4.1% increase in dwelling rents in 2022/23 along with the detailed HRA Budget proposals for 2022/23, as set out in Appendices B to E to item A.4 of the Joint Report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder.

Cabinet had before it a joint report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder (A.4) which sought its approval of the final Housing Revenue Account (HRA) budget proposals for 2022/23 (including fees and charges, capital programme and movement in HRA Balances) for recommendation to Council on 15 February 2022.

Cabinet recalled that, at its meeting held on 17 December 2021 (Minute 101 referred), it had considered the HRA Business Plan and Budget Proposals 2022/23. The budget proposals at that time had provided for a surplus of £0.143m that was agreed to be contributed to the Capital Programme. Those proposals had subsequently been subject to consultation with the Resources and Services Overview and Scrutiny Committee, which had met on 12 January 2022, and that Committee’s comments had been considered earlier in the meeting (as reported above under Minute 116).

It was reported that since the Cabinet’s meeting on 17 December 2021, a small number of changes had been required, the most significant of which related to the recharges from the General Fund. Those changes had resulted in the overall surplus increasing to £0.333m a change of £0.190m compared to the surplus of £0.143 presented to Cabinet in December. Appendix A to the Portfolio Holders’ joint report set out the updated Business Plan, in terms of 2021/22 and 2022/23, with Appendix B thereto setting out the proposed detailed budgets that reflected this latest position.

Cabinet was advised that this position remained subject to further adjustments that might be required as part of finalising the budget for presenting to Council on 15 February 2021, with a delegation included in the Portfolio Holders’ written recommendations to respond to this possibility.

Members were informed that the revised forecast surplus in 2022/23 remained committed to investing in capital works, which included the delivery of new affordable housing but also the continued investment in the homes of the Council’s existing tenants. The surplus set out above of £0.333m therefore remained as a contribution to the HRA capital programme.

Appendix C to the Portfolio Holders’ joint report set out the proposed fees and charges for 2022/23, which broadly reflected inflationary uplifts where relevant or changes to better reflect the cost of providing the associated service.

The proposed HRA Capital Programme for 2022/23 was set out in Appendix D thereto, which now included the additional contribution of £0.333m as mentioned above.

Members were made aware that the average weekly rent remained unchanged to the figure reported in December 2021 at £87.55, an increase of 4.1% over the comparable figure of £84.10 for 2021/22. As mentioned within the report to Cabinet in December 2021, due to the relatively volatile CPI rates experienced since the start of the COVID 19 pandemic, if the proposed level of rent increase in 2022/23 was taken together with the relatively low figure of 1.5% last year, then the average annual increase would be 2.8% over the two years.

It was reported that the HRA general balance was forecast to total £4.325m at the end of 2022/23, which retained a strong financial position against which the Housing Strategy and associated HRA 30 year Business Plan could be continue to be delivered / developed.

Cabinet recognised that the HRA balances, together with the proposed rent increase for 2022/23 were important elements of the overall business plan, especially against the background of the risks that were expected to emerge from the Hackett Review and the new decent homes standards along with delivery actions underpinned by the Council’s Housing Strategy.

Cabinet noted that the HRA debt continued to reduce year on year as principal was repaid with a total debt position at the end of 2022/23 forecast to be £35.350m (a reduction of £1.427m compared with the figure at the end of 2021/22).

Officers had consulted with the Chairman of the Tenant’s Panel who had responded with positive comments on the HRA Budget Proposals. Cabinet recognised that the Tenant’s Panel played an important role in developing the HRA Business Plan and budget proposals moving forward.

Having duly considered all of the information and advice contained in the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder’s joint report and in order to enable the HRA budget proposals for 2022/23 to be submitted to Council for its approval:-

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

RESOLVED that Cabinet –

(a)    authorises the Assistant Director (Finance & IT), in consultation with the Housing Portfolio Holder, to adjust the forecast / budget, including the use of reserves, in the event that the financial position changes prior to Council considering the HRA budget on 15 February 2022;

(b)   subject to (a) above, approves and recommends to Full Council on 15 February 2022a 4.1% increase in dwelling rents in 2022/23 along with the detailed HRA Budget proposals for 2022/23, as set out in Appendices B to E to item A.4 of the Joint Report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder.