Issue - meetings

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report which summarised the Housing Revenue Account (HRA) revised forecast for 2017/18 and the Cabinet’s budget proposals for 2018/19.

She referred to the Government’s rent reduction policy of reducing rents by 1% per annum which had meant that CBH had to make provision to mitigate the loss of £6.7 million in rental income up to 2020. Beyond that Government had now confirmed that the rent policy will revert back to annual increases of up to CPI plus 1% per annum for the following five years until the next review.

She believed that the approach CBH had taken was a balanced one, making management and maintenance savings of £1,421 million, realigning the capital programme and the use of revenue reserves together with some smaller cost savings. By this approach CBH were able to maintain existing service levels, retain the decent homes standard, continue delivery of the major windows and doors replacement and complete the new build programme.

She highlighted the impact of the introduction of Universal Credit which was set out in the report and the steps CBH were taking to provide support and information to all tenants affected by these changes.

She highlighted the difficult of finalising a 30 year business plan when in reality there was so much change happening at short notice but the projections had been updated to reflect the current situation as set out in the report.

She highlighted some of the achievements on CBH and CBC. These included over three and a half million of spending on repairs and maintenance, and  nearly eight million on property improvements and major works, one and a half million on new build and acquisitions, and the continuing spending on benefits advice, employment initiatives and services for older and disabled people.

She concluded by thanking all of CBH’s team for ensuring that the challenges they face will still include some new builds, deliver the same level of service to tenants, in particular the valuable work in terms of tenant wellbeing around debt and money advice, community support & activity events, and to see that supporting the council’s older tenants living in supported accommodation despite the last few years in decreased funding will all continue. She acknowledged the thought and hard work that had gone into preparing the revised budget.

In response to a question from a Member regarding her confidence that the Government would keep to its policy that rent increases would be restricted to 1%, the Cabinet Member advised that there were no guarantees in life but the council and CBH would continue to react swiftly to any changes announced by Government.

A Member commented that they looked forward to the day when CBH could include a building company which would be in a position to build new homes and would provide valuable opportunities for taking on and training apprentices. The Cabinet Member Housing advised that he had regular conversations with CBH on this suggestion and would keep Members informed of any changes. He  ...  view the full minutes text for item 11

Report of the Cabinet Member Finance

RESOLVED THAT it be recommended to Council that

1.    the revised HRA forecast for 2017/18 be noted.

2.    the HRA budget proposals for 2018/19 (shown at Appendix 2) including a proposed rent decrease of 1% and changes to other rents and charges as detailed within the report be approved.

3.    the proposed HRA capital programme for 2018/19 as shown at Appendices 3 and 4 be approved

4.    authority be delegated to the Section 151 Officer, in consultation
with the Cabinet Member for Finance, to apply for a direction from the Ministry of Housing, Communities and Local Government to permit Discretionary Housing Payments to Council Tenants to be funded from the HRA if it appears probable that the annual Government allocation for the year will be exceeded (see paragraph 6.6 of the report).

The Cabinet Member Finance introduced the report which summarised the Housing Revenue Account (HRA) revised forecast for 2017/18 and the Cabinet’s budget proposals for 2018/19.

She highlighted some of the achievements on CBH and CBC. These included over three and a half million of spending on repairs and maintenance, and  nearly eight million on property improvements and major works, one and a half million on new build and acquisitions, and the continuing spending on benefits advice, employment initiatives and services for older and disabled people.

She concluded that the council should be proud of what had been achieved despite the squeeze on finances which the Government had introduced on rent reduction, however none of this could be achieved without a dedicated hard working committed team of staff across the organisation and she invited her Cabinet colleagues to join her in thanking them..

The Cabinet Member Housing supported the recommendations and gave a special thanks to all the staff at CBH for their excellent work.

RESOLVED THAT it be recommended to Council that

1. the revised HRA forecast for 2017/18 be noted.
2. the HRA budget proposals for 2018/19 (shown at Appendix 2) including a proposed rent decrease of 1% and changes to other rents and charges as detailed within the report be approved.
3. the proposed HRA capital programme for 2018/19 as shown at Appendices 3 and 4 be approved
4. authority be delegated to the Section 151 Officer, in consultation
   with the Cabinet Member for Finance, to apply for a direction from the Ministry of Housing, Communities and Local Government to permit Discretionary Housing Payments to Council Tenants to be funded from the HRA if it appears probable that the annual Government allocation for the year will be exceeded (see paragraph 6.6 of the report).