Agenda item

This report sets out the Housing Revenue Account (HRA) forecast outturn for 2015/16 and the proposed HRA budget for 2016/17 as required by the Local Government and Housing Act 1989.  The proposed annual budget takes account of the national rent reductions as required by Government. This will reduce rental income by £498,000 compared with 2015-16 with further reductions required each year to 2020.

(i)           HRA Business Plan Budget 2016-17:

a)    Note the HRA forecast outturn for 2015/16 as set out in section 3.1.1 (Table 1) – Budget Outturn Table 2015/16of this report and to:

b)    Approve the proposals and agree the savings and budget reductions for the HRA budget for 2016/17, as set out in Table 15 of this report and agree that they be included in the overall Budget for 2016/17 for approval by Full Council in February 2016.

c)    Approve the HRA budget growth for 2016/17 of £512k and the use of £3.504m of one-off available resources.

(ii)          HRA Rent Setting 2016-17:

a)    Approve an average overall rent decrease (excluding service charges) from April 2016 of £1.15 per dwelling per week, for HRA council dwellings, which is an average overall rent decrease of 1%.

b)    Agree an average overall rent decrease from April 2016 of £1.26 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 6) of this report

c)    Approve an average overall licence decrease (excluding service charges) from April 2016 of £2.45 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 7) of this report.

(iii)       HRA Service Charges 2016-17:

a)    Agree the following Service Charges from April 2016:

          i. Concierge Service Charge:An average increase from £7.76 to £9.04 per week, to meet the actual costs of providing this service.

         ii. Agree all other Service Charge amounts will remain the same in 2016/17 as in 2015/16.

        iii. A review of Helpline Service Charges, including service-user consultation, is carried out in 2016-17 to consider the service specification and costs.

b)    Agree an increase in Garage Rents, as set out in section 3.3.3 and in Table 11 of this report.

c)       Agree to increase the service charges for Hillside dwellings from April 2016 by an average of 0.6% (an average of £0.36 per dwelling per week) as set out in section 3.3.2 (Table 9) of this report.

(iv)         Management Services 2016-17:

a)    Agree a Management Fee for Brent Housing Partnership of £7.458m for 2016/17 which reflects an efficiency saving as set in section 3.1.3 (Table 3).

b)    Note that a review of BHP’s Operating Model is underway with a further report to be made to Cabinet in 2016-17 with recommendations for service improvement and cost savings.

c)    Agree the amendments to the Council’s Tenancy Terms and Conditions for Brent Council Introductory and Secure tenants as set out in section 3.4.1 of this report, taking account of responses to consultation that has been undertaken.

d)    Approve a programme of financial and service reviews to be carried out in 2016/17 to review the cost, quality and customer satisfaction of:

                      I.        Tenant Management Organisation – Watling Gardens

                    II.        Tenant Management Organisation – Kilburn Square

                   III.        Residential Site Pitch Managed Services

e)    Approve a review of the existing Helpline and Estate Wardens Services in 2016-17 to consider future service arrangements including considerations of cost, quality and customer satisfaction.

f)     And agree to report to Cabinet on the outcome of the reviews, as set out in 2.4 b), 2.4 d) and 2.4 e) above.

(v)          HRA Stock Investment Programmes 2016-17:

a)    Approve an overall HRA stock investment programme of £33.789m for 2016/17, as set out in Appendix 1 of this report.

(vi)                    HRA Development Programmes 2016-18:

a)    Agree a Phase 1 (infill) Council New Build Development Programme HRA budget of £8.373m for 2016/17 and £6.415m for 2017/18 to complete 61 homes.

b)    Approve the HRA Development Agency Fee of £608K for 2016-17 and £139K General Fund Development Agency Fee within the Phase 1 and Phase 2 budget at a) above as set out in section 3.6.1 and in Table 14 of this report.

c)    Agree a Phase 2 (infill) Council New Build Development Programme HRA budget of £6.284m for 2016/17 and £13.095m for 2017/18 to develop 94 homes.

d)    Agree a feasibility budget of £478k for Phase 2 (Infill) within the Phase 2 Infill budget at c) above and £250k for Phase 3 (Infill) in 2016/17 to progress future pipeline schemes.

e)    Agree a Phase 2 (NAIL) New Accommodation Independent Living Development Programme General Fund budget of £2.083 for 2016/17 and £1.289m for 2017-18 to complete 16 homes.

The report from the Strategic Director of Community Wellbeing set out the Housing Revenue Account (HRA) forecast outturn for 2015/16 and the proposed HRA budget for 2016/17 as required by the Local Government and Housing Act 1989.  The proposed annual budget took account of the national rent reductions as required by Government. Councillor McLennan (Lead Member, Housing and Development) drew attention to the resulting reduction in rental income by £498,000 compared with 2015-16 with further reductions required each year to 2020 which would need to be clawed back. Councillor McLennan emphasised the need for more affordable homes.

RESOLVED:

(i)        HRA Business Plan Budget 2016-17:

(a)       that the HRA forecast outturn for 2015/16 as set out in section 3.1.1 (Table 1) – Budget Outturn Table 2015/16 of the report Strategic Director of Community Wellbeing be noted;

(b)       that approval be given to the proposals and agreement to the savings and budget reductions for the HRA budget for 2016/17, as set out in Table 15 of the report and agree that they be included in the overall Budget for 2016/17 for approval by Full Council in February 2016;

(c)        that approval be given to the HRA budget growth for 2016/17 of £512k and the use of £3.504m of one-off available resources.

(ii)        HRA Rent Setting 2016-17:

(a)       that approval be given to an average overall rent decrease (excluding service charges) from April 2016 of £1.15 per dwelling per week, for HRA council dwellings, which is an average overall rent decrease of 1%;

(b)       that agreement be given to an average overall rent decrease from April 2016 of £1.26 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 6) of the report;

(c)        that approval to given to an average overall licence decrease (excluding service charges) from April 2016 of £2.45 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 7) of the report.

(iii)       HRA Service Charges 2016-17:

a)    that agreement to given to the following Service Charges from April 2016:

(i)    concierge Service Charge: An average increase from £7.76 to £9.04 per week, to meet the actual costs of providing this service;

(ii)   agree all other Service Charge amounts will remain the same in 2016/17 as in 2015/16;

(iii)  a review of Helpline Service Charges, including service-user consultation, is carried out in 2016-17 to consider the service specification and costs.

b)    that agreement be given to an increase in Garage Rents, as set out in section 3.3.3 and in Table 11 of the report;

c)    that the service charges for Hillside dwellings be increased from April 2016 by an average of 0.6% (an average of £0.36 per dwelling per week) as set out in section 3.3.2 (Table 9) of the report.

(iv)       Management Services 2016-17:

a)    that agreement be given to a Management Fee for Brent Housing Partnership of £7.458m for 2016/17 which reflects an efficiency saving as set in section 3.1.3 (Table 3);

b)    that it be noted that a review of BHP’s Operating Model is underway with a further report to be made to Cabinet in 2016-17 with recommendations for service improvement and cost savings;

c)    that the amendments to the Council’s Tenancy Terms and Conditions for Brent Council Introductory and Secure tenants as set out in section 3.4.1 of the report, be agreed taking account of responses to consultation that has been undertaken;

d)    that a programme of financial and service reviews be carried out in 2016/17 to review the cost, quality and customer satisfaction of:

(i)   Tenant Management Organisation – Watling Gardens

(ii)  Tenant Management Organisation – Kilburn Square

(iii) Residential Site Pitch Managed Services

e)    that approval be given to a review of the existing Helpline and Estate Wardens Services in 2016-17 to consider future service arrangements including considerations of cost, quality and customer satisfaction;

f)     that a report be submitted to Cabinet on the outcome of the reviews, as set out in 2.4 b), 2.4 d) and 2.4 e) above.

(v)       HRA Stock Investment Programmes 2016-17:

that approval be given to an overall HRA stock investment programme of £33.789m for 2016/17, as set out in Appendix 1 of the report.

(vi)      HRA Development Programmes 2016-18:

a)    that a Phase 1 (infill) Council New Build Development Programme HRA budget of £8.373m for 2016/17 and £6.415m for 2017/18 to complete 61 homes be agreed;

b)    that approval be given to the HRA Development Agency Fee of £608K for 2016-17 and £139K General Fund Development Agency Fee within the Phase 1 and Phase 2 budget at a) above as set out in section 3.6.1 and in Table 14 of the report;

c)    that agreement be given to a Phase 2 (infill) Council New Build Development Programme HRA budget of £6.284m for 2016/17 and £13.095m for 2017/18 to develop 94 homes;

d)    that agreement be given to a feasibility budget of £478k for Phase 2 (Infill) within the Phase 2 Infill budget at c) above and £250k for Phase 3 (Infill) in 2016/17 to progress future pipeline schemes.

e)    that agreement be given to a Phase 2 (NAIL) New Accommodation Independent Living Development Programme General Fund budget of £2.083 for 2016/17 and £1.289m for 2017-18 to complete 16 homes.