Issue - meetings

Report of the Cabinet Member Finance- REPORT TO FOLLOW

RESOLVED THAT

1.    the revised HRA forecast for 2016/17 be noted.

2.    the interim HRA budget proposals for 2017/18 (Appendix 2) be approved for consultation including a proposed rent decrease of 1% and changes to other rents and charges as detailed within the report.

3.    the proposed HRA capital programme for 2017/18 as shown at Appendix 3 be approved.

4.    authority be delegated to the Section 151 Officer, in consultation
with the Cabinet Member for Finance, to determine and approve any additional material that may be needed to support the presentation of the interim budget proposals for consultation.

5.    Consultation responses be sought by 26^th January 2017.

The Cabinet Member Finance introduced the report and explained that the Government’s rent reduction policy resulted in Cheltenham Borough Homes (CBH) having to make provision over the next four years to mitigate the £6.7 million rental income loss up to 2020. Government proposals beyond this date were unknown.

She explained that the approach CBH had taken was a balanced one, making management and maintenance savings of £1.7 million, realigning the capital programme therefore reducing their outlay up to March 2020 by £2.7 million, the use of reserves totalling £2.2 million also some smaller cost savings of £100,000

CBH were still able to maintain existing service levels, retain the decent homes standard, continue delivery of the major windows and doors replacement, complete the new build programme up to March 2018 whilst leaving £1.5 million in reserves for contingency.

The Cabinet Member added that a number of future challenges due to significant changes in government policy that have not yet be finalised, would have an impact which was yet to be determined, with the details outlined in the report.

Appendix 4 outlined the property improvements and major repairs as part of the capital programme for the next two years. She highlighted that it remained unclear whether the additional operating surpluses forecast in the previous 30 year business plan would be restored after 2020 and there was the potential unknown impact of the high value asset sales. Therefore, until these two key areas became clearer the focus would be on the medium term.

The Cabinet Member Finance thanked CBH’s finance team for ensuring that the challenges they faced would still include new builds and deliver the same level of service to tenants.

The Cabinet Member Housing stated that CBH was mindful of the risks as outlined in the risk assessment. He also highlighted the plans and progress section of the report and the wide array of work it was still able to undertake which was of great credit to it as an organisation. This was endorsed by the Leader who thanked CBH for the great work it undertook on behalf of the town.

RESOLVED THAT

1.    the revised HRA forecast for 2016/17 be noted.

2.    the interim HRA budget proposals for 2017/18 (Appendix 2) be approved for consultation including a proposed rent decrease of 1% and changes to other rents and charges as detailed within the report.

3.    the proposed HRA capital programme for 2017/18 as shown at Appendix 3 be approved.

4.    authority be delegated to the Section 151 Officer, in consultation
with the Cabinet Member for Finance, to determine and approve any additional material that may be needed to support the presentation of the interim budget proposals for consultation.

5.    Consultation responses be sought by 26^th January 2017.