Decision details

The Executive considered a report on the Council’s Housing Revenue Account (HRA) Medium Term Financial Strategy (2018/19 – 2022/23) and Business Plan Update.

The Assistant Director (Finance and Estates) gave a Powerpoint presentation on the key aspects of the report.

The Assistant Director (Finance and Estates) was requested to re-emphasise to the Government the importance to the Council of it being able to retain 50% of 1 for 1 Capital receipts.  She was also requested to include an additional MTFS principle that the Council was committed to the delivery of an increased number of homes available for social rent.

Officers were further requested to monitor the impact on the HRA of Government welfare reforms, particularly Universal Credit.

It was RESOLVED:

1.         That, for modelling purposes, fees and charges increases are in line with inflation.

2.         That, for modelling purposes, the updated inflation assumptions used in the Medium Term Financial Strategy (Section 4.5 refers) be approved.

3.         That the Capital Programme assumptions contained within the report be approved for the existing programme and new build properties and incorporated into the 2019/20 budget, (subject to subsequent approved changes from the action plan in Appendix A).

4.         That the assumptions contained within Scenario 2b be approved, including the ability to build for private sale to provide additional income to the HRA (Paragraphs 4.11.8 - 4.11.12 refer), and subject to subsequent approved changes from the action plan in Appendix A.

5.         That the Action Plan is approved, in order to consider options to increase the spending power within the HRA, as a result of the removal of the HRA debt cap (Appendix A).

6.         That the two new additional funding requirements identified in Paragraph 14.13.8 of the report be approved.

7.         That the current £4.9Million capital funding shortfall over the 30 year business plan (Paragraph 4.11.9 refers) be noted.

8.         That the minimum level of balances for the HRA Business Plan, set as a minimum £2Million plus inflation (Paragraph 4.16.3 refers), be noted.

9.         That if material changes to forecasts are required following further Government announcements or recommendations as a result of the Action Plan, the Assistant Director (Finance and Estates) be requested to revise the Medium Term Financial Strategy and re-present it to the Executive for approval.

10.      That the HRA MTFS principles are reviewed and re-approved following the work contained within the Action Plan at Appendix A.

11.      That public consultation is 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.