The Cabinet considered a joint report of the Corporate Director for Corporate Services and Corporate Director for People setting out the Housing Revenue Account (HRA) budget for 2016/17, together with the information necessary to set a balanced budget as required by legislation. This item was considered by Policy and Resources Scrutiny Committee.

Recommended:-

1. That a rent reduction of 1% on General Needs tenancies, as required by the Welfare Reform and Work Bill, be approved.

2. That a zero % rent increase on Sheltered Accommodation tenancies, be approved.

3. That an average rent increase of 3.39% on shared ownership properties, be approved.

4. That an increase in hostel rents to the appropriate Local Housing Allowance rate, less 10% plus £60, as allowed by national guidance, be approved.

5. That the proposed rent changes in 1-4 above be effective from 4 April 2016.

6. That the increases in other charges, as set out in section 5 of the submitted report, be approved.

7. That the management fee proposed by South Essex Homes, as set out in section 6 of the report, be noted.

8. That from 1 April 2016, South Essex Homes be charged with setting and recovering service, heating and water charges directly, on a cost recovery only basis, and their management fee be reduced accordingly.

9. That the appropriations to the Repairs Contract Pensions earmarked reserve and the HRA Capital Investment earmarked reserve, as set out in section 8 of the report, be approved.

10. That, subject to 2 - 9 above, the HRA budget, as set out in Appendix 1 of the report, be approved.

11. That a report be brought back to Cabinet in the Autumn on the HRA Medium Term Financial Strategy and Plan, as set out in section 9 of the submitted report.

12. That the value of the Council’s Capital allowance for 2016/17 be declared as £34.073M, as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.

Reason for Decision

Part of the process of maintaining a balanced budget for the HRA is to consider and set any rent rise (and associated increases in other income streams). Full Council need to approve the HRA budget prior to the start of the financial year.

Other Options

Options available to Members are set out throughout the submitted report, particularly in relation to the proposed rent rise.

Note:- This is a Council Budget Function, not eligible for call in by virtue of Budget and Policy Framework Procedure Rule 1.1(b)

Executive Councillor:- Norman