Decision details

For members to consider and agree a balanced HRA budget for 2012-13 and to agree the level of rent and service charge increase for Council dwellings for 2012-13

(i)         that approval be given to the revised (probable) budget for 2011/12 (Appendix 1 Table 1);

(ii)        that it be noted that the new HRA self financing system that takes effect from April 2012 and that the draft budget for 2012/13 has been prepared on that basis, noting that:-

·         HRA Subsidy will cease from 2012/13;

·         The Government will redeem £198.000m of Brent Council’s debt with the Public Works Loan Board on 28 March 2012;

·         Brent’s HRA borrowing limit under self financing will be £199.291m; and

·         The estimated HRA borrowing “headroom” will be £59m

(iii)       that agreement be given to the savings/budget reductions for 2012/13 as set out in paragraph 3.53.4;

(iv)       that agreement be given to the HRA budget growth of £5.642m for depreciation (major repairs or debt repayment) as set out in paragraph 3.53.5 of the report from the Director of Regeneration and Major Projects;

(v)        that approval be given to an average overall rent increase (excluding service charges) from April 2012 of £6.81 per week, which is an average overall increase of 7.14%, as set out in further detail in paragraphs 3.35 to 3.39 of the report;

(vi)       that agreement be given to increase HRA Council Dwelling service charges by 5.6% from April 2012;

(vii)      that approval be given to the HRA budget for 2012/13 (Appendix 1 Table 1) of the report;

(viii)     that that from April 2012 all HRA dwellings that are relet (except successions, assignments and mutual exchanges and internal transfers ) are set at target rent from the commencement of the new occupancy;

(ix)       that it be noted that updated HRA Business Plan would be presented to the Executive shortly and this would include options for spending the Major Repairs resources;

(x)        that agreement be given to an average overall rent increase of £7.03p per dwelling per week on the Brent Stonebridge Dwellings, which is an average overall rent increase of 6.3% as set out in paragraph 3.68 of the report;

(xi)       that agreement be given to decrease the service charges on the Brent Stonebridge Dwellings by an average of 0.7% or an average of £0.06 per dwelling per week as set out in paragraph 3.71;

(xii)      that approval be given to delegate to the Director of Regeneration and Major Projects in consultation with the Director of Finance and Corporate Services the Brent Housing Partnership (BHP) management fee for the financial year 2012/13.

Internal