Agenda item

Report of the Cabinet Member Finance and Community Development-

Having declared a personal and prejudicial interest in this item the Cabinet Member Corporate Services left the room and did not participate in the debate.

The Cabinet Member Finance and Resources stated that the Housing Revenue Account was a good news story. The Self-Financing settlement from central government had been better than expected at £27.9m (reduced from £38.4m originally budgeted for). This meant that the net impact of self financing next year was of more than £2m which would give the Council a strong start in delivering the strategic aims proposed in the draft HRA business plan. These were new build, improvement of stock including environmental and fuel efficiency works and service improvements. Consultation on plans had now been completed and feedback would be available in early January.

The Cabinet Member highlighted paragraph 3.1.3 of the report detailing how the debt settlement was arrived at. This gave the council and affordable settlement which should produce significant extra resources to make a difference in communities. Both additional capital and revenue funds would be available to invest in the stock.

CBH were currently evaluating plans for new build and further investment in the existing stock. CBH had put forward growth bids totalling £190k for service improvements, for enhancing the safer estates service, fuel reduction initiatives, improvements in health and safety management and further work to help with financial exclusion. The cost of these was largely offset by other savings identified by CBH giving a net increase in the CBH budget of £68k.

The Cabinet Member reported that rents would again be rising in line with the national formula. He highlighted that the important change was that from next year the money from rent increases would stay in Cheltenham and be used for the benefit of all tenants.

The Cabinet member commended the community development approach CBH had adopted to housing management. He recognised the achievements of CBH to date in managing the council’s housing stock. He took the opportunity to thank all those involved, CBC finance staff and CBH.

The Leader of the Council welcomed the report but sought assurance from CBH that work was ongoing within CBH to create efficiencies. In response the Cabinet Member explained that salaries at CBH were frozen and economies had been made. Bob Dagger, Assistant Chief Executive CBH, outlined the savings that CBH had made in terms of reactive repair work, estate cleaning and general management savings. The growth proposals were aligned to the emerging strategy in the HRA business plan. He stressed that CBH viewed the HRA as an extremely valuable resource which would be used with the utmost care.

RESOLVED

1. That the revised HRA budget for 2011/12 be noted.
2. That the interim HRA budget proposals for consultation including a proposed average rent increase of 6.43% (applied in accordance with rent restructuring guidelines) and increases in other rents and charges as detailed at Appendix 5 be approved.

3. That the proposed HRA capital programme at Appendix 6 be approved.

4. That authority be delegated to the Director Resources, in consultation with the Cabinet Member for Community Development and Finance, to determine and approve any additional material that may be needed to support the presentation of the interim budget proposals for consultation.

5. That consultation responses be sought by 26^th January 2012.