Issue - meetings

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report. She advised that there had been significant changes in the Government Housing Policy during the year, most notably the abolition of the HRA debt cap. She explained that this coupled with the certainty on rent policy until 2025, would have a positive impact on HRA resources, enabling the Council to increase investment in new build and stock improvements. The Cabinet Member finance also made the following comments:

·           Rents would again be reduced by 1% and the Government had confirmed that rent policy would then revert back to the previous guidelines of allowing annual increases of up to CPI + 1% per annum for the following 5 years before a further review.

·           The 30 year HRA Business Plan has been updated to reflect:

o  The anticipated revenue outturn for 2018/19;

o  The current development programme for the period from April 2019 to March 2022;

o  Contingency budgets for market acquisitions and the purchase of new affordable units on sites where Section 106 planning agreements are in place; and

o  A refreshed assessment of the 30 year “need to spend” on existing stock for both capital and revenue expenditure.

·           CBH had taken a balanced approached in order to maintain existing service levels, retain the decent homes standard, continue delivery of the major windows and doors replacement, complete the new build programme, and deliver the new showers programme.

·           With regards to UC, she advised that CBH were conducting a proactive campaign to provide support and information to all tenants affected by these changes.

·           Significant variations within the 2018/19 revised forecast greater than £30,000 have been identified in budget monitoring reports and were summarised at 5.1 of the report.

·           She explained that a new agreement for the HRA grounds maintenance work undertaken by Ubico would commence in April 2019 and that those facing an increase in charges would be protected by transitional arrangements with increases being phased in over three years.

·           She reported that garage rents would be increased by 3% from April 2019 in line with the Retail Price Index.

·           Significant changes to the HRA greater than £30,000 in 2019/20 as compared to the revised forecast for 2018/19 were itemised in the table at 6.5.

·           Revenue contributions totalling £8,436,600 would be required to fund capital expenditure in the year, reducing revenue reserves to £1,568,100 at 31st March 2020.    

·           CBH had made substantial progress to modernise and transform the housing management and maintenance services delivered to tenants.

·           The capital programme would require CBH to carry out procurement on behalf of the council.

·           The proposed funding of the capital programme, together with a statement of balances on the major repairs reserve, was shown at Appendix 3. She advised that the main sources of funding remained the major repairs reserve and contributions from the revenue account. The Government’s policy to stimulate Right to Buy had also increased the availability of capital receipts and that a proportion of those receipts were only retained by the Council if they were used  ...  view the full minutes text for item 10

Report of the Cabinet Member Finance

RESOLVED THAT it be recommended to Council to :

1.    Note the revised HRA forecast for 2018/19.

2.    Approve the HRA budget proposals for 2019/20 (shown at Appendix 2) including a proposed rent decrease of 1% and changes to other rents and charges as detailed within the report.

3.    Approve the proposed HRA capital programme for 2019/20 as shown at Appendix 3.

The Cabinet Member Finance introduced the report and explained that there had been significant changes in Government Housing Policy during the year, most notably the abolition of the HRA debt cap. This, together with the certainty on rent policy until 2025, would have a positive impact on HRA resources enabling the Council to increase investment in new build and stock improvements.

She reported that rents would again be reduced by 1% in April 2019 being the final year of the four year policy that commenced in April 2016 and would finish in March 2020.Rent policy would then revert back to the previous guidelines of allowing annual increases of up to CPI + 1% per annum for the following 5 years before a further review.

The 30 year HRA Business Plan had been updated to reflect:-

•                Anticipated revenue outturn for 2018/19.

•                The current development programme for the period from April 2019 to March 2022 which would deliver 105 new build units at a total cost of £14.83m.

•                Contingency budgets for market acquisitions and the purchase of new affordable units on sites where Section 106 planning agreements were in place.

•                A refreshed assessment of the 30 year “need to spend” on existing stock for both capital and revenue expenditure. This included a new showers programme which had been identified as one of the most popular improvements requested during both the 2017 survey of tenants and residents and the voids review undertaken by the tenant services improvement panel..

By taking a balanced approach 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, and deliver the new showers programme.

The Cabinet Member wished to put on record her thanks to all of CBH’s finance team.

The Cabinet Member Housing also wished to thank CBH for their extraordinary achievements. He made reference to paragraph 8.1 of the report which outlined the key work streams that were driving plans to modernise and transform the housing management and maintenance services delivered to tenants.

RESOLVED THAT it be recommended to Council to :

1.    Note the revised HRA forecast for 2018/19.

2.    Approve the HRA budget proposals for 2019/20 (shown at Appendix 2) including a proposed rent decrease of 1% and changes to other rents and charges as detailed within the report.

3.    Approve the proposed HRA capital programme for 2019/20 as shown at Appendix 3.