Decision Maker: Executive
Decision status: For Determination
Is Key decision?: No
Is subject to call in?: No
The Executive considered a report in respect of the Housing Revenue Account (HRA) Medium Term Financial Strategy update 2020/21 – 2024/25.
The Leader advised that she would be continuing to raise at national level the imbalance that there was no Covid-related Government financial support for Housing Revenue Accounts (ie. for those Councils with their own housing stock).
It was RESOLVED:
1. That the change in the Medium Term Financial Strategy principles, as outlined in Paragraph 4.1.5 of the report, be approved.
2. That, for modelling purposes, the HRA 2021/22 rents will increase by 1.5% (based on the formula of CPI+1%, with September 2020 CPI at 0.5%).
3. That the updated inflation assumptions used in the Medium Term Financial Strategy (as set out in Section 4.2 of the report) be approved.
4. That a HRA Financial Security Target of £878,000 be approved for the period 2021/22 – 2023/24 (as set out in Paragraph 4.9.8 of the report).
5. That the approach to Financial Security, as set out in Section 4.9 of the report, be approved.
6. That an amount of £100,000 for 2021/22 and 2022/23 be approved for inclusion in the budget setting process as a Transformation Fund, to help deliver the Financial Security Target (as referred to in Paragraph 4.9.10 of the report).
7. That the HRA Covid impacts and 2nd Quarter changes to the HRA, as outlined in Sections 4.3 and 4.4 of the report, be approved.
8. That the financial impact of Covid in 2020/21 and future years be noted.
9. That the Leader’s Financial Security Group oversee the development of the 2021/22 – 2023/24 savings package.
10. That the Medium Term Financial Strategy be regularly updated to for any material financial pressures so forecasts are updated and be re-presented to the Executive for approval.
11. That public consultation be commissioned in line with the requirements of the Council’s Consultation and Engagement Strategy.
12. That the Trade Unions and staff be consulted on the key messages contained within the Medium Term Financial Strategies and more specifically when drawing up any proposals where there is a risk of redundancy.
Reason for Decision: As contained in report.
Other Options considered: As contained in report.
Publication date: 18/11/2020
Date of decision: 18/11/2020
Decided at meeting: 18/11/2020 - Executive