Decision details

Approve final HRA budget proposals for recommendation to Council  

The Cabinet Member Finance and Community Development introduced the joint report of himself and the Chief Finance Officer as circulated with the agenda. 

He explained that the HRA budget has been prepared to meet 3 financial objectives:

• To adequately fund services to tenants
• To maintain a revenue reserve of at least £1m
• To put additional funds into capital investment in the stock
  
  

The disappointing news for tenants was that, according to the Government formula that seeks to adequately finance housing, rents will rise from (on average) £66.88 to £70.51 – or £3.63 a week over a 52 week year. This amounts to a total of £188.76p – greater than the entire annual Band D Council Tax for Cheltenham. 

A key risk in the self-financing proposals is future Government rent policy and associated welfare reform, with over 70% of tenants reliant on housing benefit. It was important to understand what the impact of such rent rises will be and how changes in the benefits system may affect HRA finances. CBH have proposed the employment of a money and benefits officer – to give advice on benefits, borrowing and help in controlling rent arrears. This will give much needed additional help to our tenants in these difficult times.

The Finances are in sound order. CBH is well managed and effective and The CBH Board had endorsed the budget for 2011/12.

He moved the recommendations which were seconded by Councillor Jordan.

The Cabinet Member Finance and Community Development responded to questions on the HRA budget proposals.

Upon a vote it was

Resolved that;

1. The HRA revised budget for 2010/11 be approved;
2. The HRA 2011/12 budget including a proposed average rent increase of 5.43% applied in accordance with the rent restructuring guidelines (subject to restraints on individual property increases when aggregated with service charges) and increases in other rents and charges as detailed at Appendix 5 be approved;     
3. The revised HRA capital programme for 2010/11 at Appendix 6 be approved;
4. The HRA capital programme for 2011/12 at Appendices 6 and 7 be approved;
5. Receipts of up to £3m from the sale of HRA assets (other than through Right To Buy) in the period 1^st April 2011 to 31^st March 2014 be used for affordable housing provision.

(CARRIED, with 1 Abstention)

Public and stakeholder consultation