Agenda item
Housing Revenue Account (HRA) Budget and Rent-setting for Council Dwellings for 2017/18
This report sets out the Housing Revenue Account (HRA) forecast outturn for 2016-17 and the proposed HRA budget for 2017-18 as required by the Local Government and Housing Act 1989.
Decision:
RESOLVED:
HRA Business Plan Budget 2017-18:
a) Cabinet noted the HRA forecast outturn for 2016/17 as set out in Appendix 1 to the report.
b) Cabinet approved the proposals and agree the savings and budget reductions for the HRA budget for 2017/18, as set out in Appendix 2 to the report and agree that they be included in the overall Budget for 2017/18 for approval by Full Council on 27th February 2017.
c) Cabinet approved the HRA budget growth for 2017/18 of £3.476m and the use of £3.492m of one-off available resources.
HRA Rent Setting 2017-18:
a) Cabinet approved an average overall rent decrease (excluding service charges) from April 2017 of £0.97 per dwelling per week, for HRA council dwellings, which is an average overall rent decrease of 1% as set out in section 3.2.1 (Table 1) of the report.
b) Cabinet approved agreed an average overall rent decrease from April 2017 of £1.29 per dwelling per week for Hillside Dwellings, which is an average overall rent decrease of 1% as set out in section 3.2.2 (Table 2) of the report.
c) Cabinet approved an average overall licence decrease (excluding service charges) from April 2017 of £2 per pitch, per week, for residential council pitches, which is an average overall licence decrease of 1% as set out in section 3.2.3 (Table 3) of the report.
HRA Service Charges 2017-18:
a) Cabinet agreed to increase the service charges for HRA dwellings from April 2017 by an average of 1% (an average increase of £0.09 per dwelling per week) as set out in Appendix 3 to the report.
b) Cabinet agreed an increase in Garage Rents for Council and Private Renters, as set out in section 3.3.3 (Table 4) of the report.
c) Cabinet agreed to increase the service charges for Hillside dwellings from April 2017 by an average of 1.8% (an average increase of £0.16 per dwelling per week) as set out in Appendix 3 of the report.
Management Services 2017-18:
a) Cabinet agreed a Management Fee for Brent Housing Partnership of £7.488m for 2017/18.
HRA Stock Investment Programmes 2017-18:
a) Cabinet approved an overall HRA stock investment programme of (£32.765m)for 2017/18, and an indicative budget of £20m for 2018/19 as set out in section 3.4 (Table 5) of the report.
HRA Development Programmes 2017-19:
a) Cabinet agreed to continue delivery of Phase 1 (Infill) Council New Build Development Programme with HRA budget of £9.990m for 2017/18 and £0.906m for 2018/19 to complete 62 homes.
b) Cabinet agreed to continue delivery of Phase 2 (Infill) Council New Build Development Programme with HRA budget of £18.799m for 2017/18 and £5.454m for 2018/19 to develop 95 homes.
c) Cabinet agreed to continue delivery of Phase 2 (NAIL) New Accommodation Independent Living Development Programme with General Fund budget of £9.020m for 2017/18 and £1.224m for 2018-19 to complete 40 homes.
d) Cabinet agreed a feasibility budget (Revenue Budget) of £0.125m for 2017/18 to work on future pipeline schemes beyond March 2018.
Minutes:
Councillor Harbi Farah, Cabinet Member for Housing and Welfare Reform, introduced the report setting out the Housing Revenue Account (HRA) forecast outturn for 2016-17 and the proposed HRA budget for 2017-18 as required by the Local Government and Housing Act 1989.
Councillor Farah stated that the proposed annual budget takes account of the national rent reductions as required by Government. This will reduce rental income by £470,093 in 2017-18 with further reductions required each year to 2020.
He stated that in order to offset this it is necessary to make significant savings to revenue budgets over this period and the budget for 2017-18 includes provision for initial efficiency and other savings. Further savings will be required in future years to assure the future financial sustainability of the HRA and to support the programmes for stock investment and new housing development agreed through the HRA Asset Management Strategy in 2013.
Councillor Farah stated that the proposed HRA annual budget for 2017-18 sets out proposed expenditure for housing management services, stock investment and maintenance works and new council housing development programmes as well as rent and service charge setting proposals for 2017-18. This report also sets out rent-setting proposals for other council managed partnerships by Hillside (Hyde Group) and for the Residential Pitches portfolio.
RESOLVED:
8.1 HRA Business Plan Budget 2017-18:
a) Cabinet noted the HRA forecast outturn for 2016/17 as set out in Appendix 1 to the report.
b) Cabinet approved the proposals and agree the savings and budget reductions for the HRA budget for 2017/18, as set out in Appendix 2 to the report and agree that they be included in the overall Budget for 2017/18 for approval by Full Council on 27th February 2017.
c) Cabinet approved the HRA budget growth for 2017/18 of £3.476m and the use of £3.492m of one-off available resources.
8.2 HRA Rent Setting 2017-18:
a) Cabinet approved an average overall rent decrease (excluding service charges) from April 2017 of £0.97 per dwelling per week, for HRA council dwellings, which is an average overall rent decrease of 1% as set out in section 3.2.1 (Table 1) of the report.
b) Cabinet approved agreed an average overall rent decrease from April 2017 of £1.29 per dwelling per week for Hillside Dwellings, which is an average overall rent decrease of 1% as set out in section 3.2.2 (Table 2) of the report.
c) Cabinet approved an average overall licence decrease (excluding service charges) from April 2017 of £2 per pitch, per week, for residential council pitches, which is an average overall licence decrease of 1% as set out in section 3.2.3 (Table 3) of the report.
8.3 HRA Service Charges 2017-18:
a) Cabinet agreed to increase the service charges for HRA dwellings from April 2017 by an average of 1% (an average increase of £0.09 per dwelling per week) as set out in Appendix 3 to the report.
b) Cabinet agreed an increase in Garage Rents for Council and Private Renters, as set out in section 3.3.3 (Table 4) of the report.
c) Cabinet agreed to increase the service charges for Hillside dwellings from April 2017 by an average of 1.8% (an average increase of £0.16 per dwelling per week) as set out in Appendix 3 of the report.
8.4 Management Services 2017-18:
a) Cabinet agreed a Management Fee for Brent Housing Partnership of £7.488m for 2017/18.
8.5 HRA Stock Investment Programmes 2017-18:
a) Cabinet approved an overall HRA stock investment programme of (£32.765m)for 2017/18, and an indicative budget of £20m for 2018/19 as set out in section 3.4 (Table 5) of the report.
8.6 HRA Development Programmes 2017-19:
a) Cabinet agreed to continue delivery of Phase 1 (Infill) Council New Build Development Programme with HRA budget of £9.990m for 2017/18 and £0.906m for 2018/19 to complete 62 homes.
b) Cabinet agreed to continue delivery of Phase 2 (Infill) Council New Build Development Programme with HRA budget of £18.799m for 2017/18 and £5.454m for 2018/19 to develop 95 homes.
c) Cabinet agreed to continue delivery of Phase 2 (NAIL) New Accommodation Independent Living Development Programme with General Fund budget of £9.020m for 2017/18 and £1.224m for 2018-19 to complete 40 homes.
d) Cabinet agreed a feasibility budget (Revenue Budget) of £0.125m for 2017/18 to work on future pipeline schemes beyond March 2018.
Supporting documents: