Agenda item

This report presents to Members the revised (probable) HRA budget for 2011/12 and the draft HRA budget for 2012/13 as required by the Local Government and Housing Act 1989.  Members are required to consider these budget estimates and the associated options, taking account of the requirement to set a Housing Revenue Account (HRA) budget that does not show a deficit and in particular Members need to consider and agree the level of HRA dwelling rents and service charges for 2012/13. The report also includes proposals for setting the rent and service charge levels for 2012/13 for the non HRA Brent Stonebridge dwellings.

(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.

Councillor Long (Lead Member, Housing) presented the report from the Director of Regeneration and Major Projects which set out the revised (probable) HRA budget for 2011/12 and the draft HRA budget for 2012/13 as required by the Local Government and Housing Act 1989.  She advised the Executive that the HRA budget had been compiled under the devolved system of council Housing finance self financing to be implemented from April 2012 and rent levels had been set in accordance with the national formula which gave an average overall rent increase for 2012/13 of 7.14% per week with service charges to also increase. Councillor Long then drew members’ attention to the recommended increases for non HRA properties. The HRA budget growth of £5.642m would be spent on either on major repairs or repaying debt. Councillor Long moved an amendment to the recommendations that clarified that the target rent levels would only apply to new tenancies and not current. The report had been presented to Brent Housing Partnership Board.

RESOLVED:-

(i)         that approval be given to the revised (probable) budget for 2011/12 (Appendix 1 Table 1 of the report from the Director of Regeneration and Major Projects);

(ii)        that it be noted that the new HRA self financing system would take effect from April 2012 and that the draft budget for 2012/13 had 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.