RESOLVED:
That Cabinet recommends to Council the approval of the following:
1) The rent setting and service charge policy (as at Appendix 1 of the Cabinet report) in the context of government rent setting policy, HRA housing revenue account budget and housing public sector capital expenditure programme 2023/24.
2) The proposed changes to current rent setting processes to apply formula rent to the reletting of social rent dwellings and rent flexibility where applicable.
3) The proposed increase to domestic energy charges of up to 25% and up to a 7% uplift of the charges for communal services received, to match the proposed increase in the basic rent for 23/24 from 3rd April 2023.
REASONS FOR DECISION:
As set out in the report.
KEY DECISION:
Report to Cabinet and Full Council.
PORTFOLIO:
Housing and Homelessness Services.
ALTERNATIVE OPTIONS CONSIDERED/REJECTED:
As set out in the report.
DECLARATIONS OF INTEREST:
None.
DISCUSSION:
The Portfolio Holder introduced the report on the Housing Services Rent Setting and Service Charge Policy and informed members that decision making in relation to rent and service charge setting must be transparent and appropriately monitored. In the case of the policy at hand, the requirement is for rent setting to be aligned with the HRA Medium Term Financial Plan and 30 Year Business Plan. Formula rent represented the maximum rent level that the Council can set for each property.
Cabinet considered the uplifts in domestic energy and communal services charges alongside the financial pressures the HRA was facing and accepted that it was necessary to try to maximise income to cover the expenditure required by the Council.
Following a question from a non-Cabinet member, the Service Manager – Housing Options, Rents, Support and Private Sector Housing explained that affordability assessments would continue to calculate financial support for those who needed it and that they would receive the requisite assistance and support provided by housing services.
Members of the Cabinet were in agreement that this was the appropriate way to proceed and were supportive of the recommendations to Council.