Issue - meetings

To consider the Housing Revenue Account Budget and Housing Public Sector Capital Expenditure Programme and to recommend them to the Council for adoption.

RECOMMENDED:

(a)        that the Housing Revenue Account budget, as set out in Appendix 1 of report item 6 considered by the Cabinet, be agreed;

(b)       that from 4 April 2016 a reduction in rents of 1% from the 2015/16 rent level, in accordance with Government requirements, be agreed;

(c)       that from 4 April 2016 an increase of 2% in hostel service charges be agreed;

(d)       that from 4 April 2016 an increase of 2% in older persons’ accommodation service charges be agreed;

(e)       that from 4 April 2016 no increase in garage rents be agreed; and

(f)        that a 2016/17 Housing Capital Programme of £16.536m, as set out in paragraph 7.1 of report item 6 considered by the Cabinet, be agreed.

The Cabinet considered the Housing Revenue Account budget and housing public sector capital programme for 2016/17.  This was the fifth year of the Housing Revenue Account self-financing system, with the first instalment of principal repayment of the settlement loan, amounting to £4.1 million, due to be made in 2017/18, reducing the spending resources available in that year.

It was proposed that rents would be reduced by 1% in line with Government requirements.  The service charges for hostels and older persons’ accommodation would be increased by 2% to ensure full cost recovery from the beneficiaries of the services.  The increases in service charges, together with other variations to the budgets including increased income from reductions in vacant properties; would offset the loss of income arising from the rent reduction to £53,000 for the year.

The proposed revenue expenditure for 2016/17 showed an increase of £1.409 million compared to 2015/16 and the Cabinet was advised of the sources of the major variations.  The budget for 2016/17 was projected to break even, maintaining a revenue account reserve balance of £1.014 million.  Additional savings that had been identified during 2015/16 had, in accordance with Council policy, would be transferred to the acquisitions and development reserve to support continuing investment in the Council’s housing stock.

The capital programme also showed an increase, with significant property development and enhancement programmes in addition to new acquisitions.

RECOMMENDED:

(a)        That the Housing Revenue Account budget, as set out in Appendix 1 of report item 6 considered by the Cabinet, be agreed;

(b)       That from 4 April 2016 a reduction in rents of 1% from the 2015/16 rent level, in accordance with Government requirements, be agreed;

(c)       That from 4 April 2016 an increase of 2% in hostel service charges be agreed;

(d)       That from 4 April 2016 an increase of 2% in older persons’ accommodation service charges be agreed;

(e)       That from 4 April 2016 no increase in garage rents be agreed; and

(f)        That a 2016/17 Housing Capital Programme of £16.536m, as set out in paragraph 7.1 of report item 6 considered by the Cabinet, be agreed.