Agenda item

To consider the draft HRA Budget for 2022/23 (including rent levels and service charges), HRA Medium Term Financial Strategy 2021/22 – 2025/26, and HRA Business Plan Review 2021.

[REPORT TO FOLLOW]

The Executive considered a report on the Draft Housing Revenue Account (HRA) Budget 2022/23; the HRA Medium Term Financial Strategy 2021/22 – 2025/26; and HRA Business Plan Review 2021.

Members noted that a review of the HRA 30 year Business Plan would take place in Summer 2022.

In response to a question, the Strategic Director (CF) confirmed that the situation with regard to the numbers of Right to Buy applications was kept under regular review.

The Executive supported an additional recommendation proposed by the Leader that the Executive Portfolio Holders for Resources and Housing, Health & Older People be requested to write a joint letter to the Secretary of State for Levelling Up, Communities and Housing setting out the Council’s concerns and uncertainties over the funding of its HRA Budget, including Climate Change/decarbonisation implications, new fire/building safety regulations, increased cost of Public Works Loan Board (PWLB) borrowing, the steep rise in the cost of construction materials, and the continuing pressures caused by the Covid pandemic, and that this letter be copied to the Local Government Association and District Councils Network.

It was RESOLVED:

1.          That the HRA rent on dwellings be increased, week commencing 4 April 2022, by 4.1%which is an average increase of £4.06 for social rents, £6.60 for affordable rents and £4.74 for Low Start Shared Ownership homes per week (based on a 52-week year), calculated using the rent formula, CPI + 1%in line with the Government’s rent policy, as set out in Paragraph 4.1.1 of the report.

2.          That draft 2022/23 HRA budget, as set out in Appendix A to the report, be approved, noting that this may be subject to change as a result of any consultation and the finalisation of recharges from the General Fund.

3.          That it be noted that the final HRA rent setting budget for 2022/23 be presented to the Executive on 21 January 2022 and Council on 26 January 2022.

4.          That key partners and other stakeholders be consulted, and their views fed back into the 2022/23 budget setting process.

5.          That for modelling purposes, unless specified, fees and charges increases are in line with inflation.

6.          That for modelling purposes, the updated inflation assumptions used in the Medium Term Financial Strategy be approved.

7.          That the Capital Programme assumptions contained within the report be approved for the existing programme and new build properties and incorporated into the 2022/23 budget.

8.          That borrowing to fund capital projects in 2022/23 of £15.7M be approved, and that future years be considered annually in line with anticipated expenditure.

9.          That the minimum level of balances for the HRA Business Plan, set as a minimum of £3Million,be noted.

10.      That the reserve of £3.4Million, to mitigate against future interest rate volatility and a reserve to accommodate future debt repayment, be noted.

11.      That, if material changes to forecasts are required following further Government announcements, the Assistant Director (Finance and Estates) be requested to revise the Medium Term Financial Strategy and re-present it to the Executive for approval.

12.      That 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.

13.      That the Executive Portfolio Holders for Resources and Housing, Health & Older People be requested to write a joint letter to the Secretary of State for Levelling Up, Communities and Housing setting out the Council’s concerns and uncertainties over the funding of its HRA Budget, including Climate Change/decarbonisation implications, new fire/building safety regulations, increased cost of Public Works Loan Board (PWLB) borrowing, the steep rise in the cost of construction materials, and the continuing pressures caused by the Covid pandemic, and that this letter be copied to the Local Government Association and District Councils Network

Reason for Decision:  As contained in report; and 13. To bring to the Government’s attention the continuing challenges faced by the Council as the owner of its Housing Stock.

Other Options considered:  As contained in report.