Issue - items at meetings - Housing Revenue Account Budget 2023/24

Cabinet

Recommended that Council

Housing Revenue Account (HRA): Revenue

(a) approve the HRA revenue budget for 2023/2024 as shown in the HRA Budget Summary as presented at Appendix A.

HRA: Review of Rents and Charges

(b) Approve that council dwelling rents for all social rented properties be increased by 7%, recognising that inflation measured by the Consumer Price Index (CPI) at September 2022, plus 1% would result in an increase of 11.1%, but that the government has introduced a cap on rent increases at 7% from April 2023.

(c) Approve that affordable rents (inclusive of service charge) are also increased by 7% in line with the increase for social rents.

(d) Approve that rents for affordable shared ownership properties are increased by 7% or RPI at January 2023 plus 0.5% whichever is the lower, from April 2023, recognising that although the government rent cap does not apply to this tenure, an increase of in excess of 7% may put undue financial pressure on these households.

(e) Approve that garage rents be increased by 7% in line with the increase for social rents.

(f) Approve the proposed service charges for HRA services and facilities provided to both tenants and leaseholders, as shown in Appendix D.

HRA: Capital

(g) Approve the required level of funding for new build investment between 2023/2024 and 2027/2028 to ensure that commitments can be met in respect of the investment of all right to buy receipts currently retained or anticipated to be received by the authority for this period. This expenditure will take the form of HRA new build, with the 60% top up met by other HRA resources.

(h) Approve the HRA Medium Term Financial Strategy forecasts as shown in Appendix B.

(i) Approve the Housing Capital Programme as shown in Appendix C.

Council

Agreed to

Housing Revenue Account (HRA): Revenue

A) Approve the HRA revenue budget for 2023/2024 as shown in the HRA Budget Summary as presented at Appendix A.

HRA: Review of Rents and Charges

B) Approve that council dwelling rents for all social rented properties be increased by 7%, recognising that inflation measured by the Consumer Price Index (CPI) at September 2022, plus 1% would result in an increase of 11.1%, but that the government has introduced a cap on rent increases at 7% from April 2023.

C) Approve that affordable rents (inclusive of service charge) are also increased by 7% in line with the increase for social rents.

D) Approve that rents for affordable shared ownership properties are increased by 7% or RPI at January 2023 plus 0.5% whichever is the lower, from April 2023, recognising that although the government rent cap does not apply to this tenure, an increase of in excess of 7% may put undue financial pressure on these households.

E) Approve that garage rents be increased by 7% in line with the increase for social rents.

F) Approve the proposed service charges for HRA services and facilities provided to both tenants and leaseholders, as shown in Appendix D.

HRA: Capital

G) Approve the required level of funding for new build investment between 2023/2024 and 2027/2028 to ensure that commitments can be met in respect of the investment of all right to buy receipts currently retained or anticipated to be received by the authority for this period. This expenditure will take the form of HRA new build, with the 60% top up met by other HRA resources.

H) Approve the HRA Medium Term Financial Strategy forecasts as shown in Appendix B.

I) Approve the Housing Capital Programme as shown in Appendix C.

Councillor John Williams presented this report, which recommended that Council approve the Housing Revenue Account (HRA) Revenue and Capital Budget for 2023/24. He explained that the HRA was ring fenced and so all maintenance work on the housing stock and building of new affordable homes had to be funded via rent. He concluded that the Council had to increase its rent by 7%. He was pleased to report that since 2018 the Council had increased its housing stock by 110 units, reversing a yearly loss due to the right to buy. Councillor John Batchelor explained that 25% of the HRA costs were spent on the loan forced on the Council to keep its housing stock, 46% on maintenance and 15% on new build. So over 60% of costs faced inflationary pressures. With a 7% increase in rent the Council was projected to cover its costs and so he supported the recommendations in the report.

Councillor Heather Williams remined Council that the Conservative Group had proposed an amendment that would have frozen rent at September’s Council meeting. The proposed increase would fall on residents who were on the lowest income and unlike Council Tax there were no separate bands for rent. She requested that Council vote separately on recommendations (a) to (f) and recommendations (g) to (i) so that the Conservative Group could support the parts of the HRA not related to the 7% increase.

Councillor Pippa Heylings explained that she was on the cross party national board for housing, which had agreed that a 7% increase in rent was necessary.

Councillor Mark Howell asked that the Council not increase rent and suggested that the authority’s garages should be converted into council housing. Councillor Daniel Lentell agreed with Councillor Howell and he suggested that the Council had other options to increasing rent.

The Leader explained that the funding from rent was required to make housing more energy efficient which would reduce cost for residents.

Councillor Sue Ellington asked for an explanation for the 577% increase in communal heating costs at Elm Court care home. Councillor Brian Milnes suggested that this was because the three year fixed tariff had ended. It was noted that an explanation was provided on page 260 of the agenda.

Councillor John Williams proposed and Councillor John Batchelor seconded the recommendations in the report. The Chair agreed to call for two separate votes. A vote was taken on recommendations (a) to (f) and were cast as follows:

In favour (25):

Councillors Henry Batchelor, John Batchelor, Paul Bearpark, Anna Bradnam, Ariel Cahn, Dr Martin Cahn, Libby Earle, Peter Fane, Corinne Garvie, Jose Hales, Bill Handley, Sally Ann Hart, Sunita Hansraj, Geoff Harvey, Tumi Hawkins, Pippa Heylings, Helene Leeming, Peter McDonald, Brian Milnes, Dr Lisa Redrup, Judith Rippeth, Bridget Smith, Susan van de Ven, Natalie Warren-Green and John Williams

Against (9):

Councillors Dr Shrobona Bhattacharya, Tom Bygott, Graham Cone, Sue Ellington, Mark Howell, Daniel Lentell, Bunty Waters, Dr Richard Williams and Heather Williams.

Abstain (0)

A vote was taken on ... view the full minutes text for item 8

Cabinet:

Recommended to Council to:

a) Approve the HRA revenue budget for 2023/2024 as shown in the HRA Budget Summary as presented at Appendix A.

b) Approve that council dwelling rents for all social rented properties be increased by 7%, recognising that inflation measured by the Consumer Price Index (CPI) at September 2022, plus 1% would result in an increase of 11.1%, but that the government has introduced a cap on rent increases at 7% from April 2023.

c) Approve that affordable rents (inclusive of service charge) are also increased by 7% in line with the increase for social rents.

d) Approve that rents for affordable shared ownership properties are increased by 7% or RPI at January 2023 plus 0.5% whichever is the lower, from April 2023, recognising that although the government rent cap does not apply to this tenure, an increase of in excess of 7% may put undue financial pressure on these households.

e) Approve that garage rents be increased by 7% in line with the increase for social rents.

f) Approve theproposed servicecharges forHRA servicesand facilities provided to both tenants and leaseholders, as shown in Appendix D.

g) Approve therequired levelof fundingfor newbuild investmentbetween 2023/2024 and2027/2028 toensure thatcommitments canbe metin respect of theinvestment of allright to buyreceipts currently retained or anticipatedto bereceived bythe authorityfor thisperiod. This expenditurewill takethe formof HRAnew build,with the60% topup met byother HRA resources.

h) Approve the HRA Medium Term Financial Strategy forecasts as shown in Appendix B.

i) Approve the Housing Capital Programme as shown in Appendix C.

This is a recommendation to Council, and not subject to call-in.

Cabinet received the Housing Revenue Account Budget for 2023/2024. Councillor John Williams, Lead Cabinet Member for Resources, introduced the report, noting the continued Council house rents have maintained the Council’s House Building programme.

Councillor John Batchelor, Lead Cabinet Member for Housing, noted the rental incomes continues the value of service and turnover of housing stock.

After a short discussion, Cabinet: