The Cabinet considered a joint report of the Executive Director (Finance and Resources) and the Executive Director (Growth and Housing) setting out the Housing Revenue (HRA) budget and rent setting for 2023/24.

Resolved:

1. That an average rent increase of 7% on all tenancies, be endorsed.

2. That an average rent increase of 7% on shared ownership properties, be endorsed.

3. That an increase of 10.1% for garage rents to £13.98 per week for tenants and £16.77 for non-tenants (being £13.98 plus VAT), a rise consistent with the standard approach taken across the Council’s fees and charges (all variants on a standard garage will receive a proportionate increase), be endorsed.

4. That the South Essex Homes core management fee at £7,192,000 for 2023/24, be endorsed.

5. That the South Essex Homes proposals for average increases of 44.29% in service charges to reflect the estimated costs incurred for 2023/24, be endorsed.

6. That the South Essex Homes proposals for an average 104% increase in heating charges for sheltered housing tenants and for hostel tenants to reflect the estimated costs incurred for 2023/24, be endorsed.

7. That the following appropriations be endorsed:

·       £60,000 to the Repairs Contract Pensions Reserve. 

·       £4,047,000 to the Capital Investment Reserve.

·       £6,549,000 from the Capital Investment Reserve.

8. That, subject to resolutions 1 to 7 above, the HRA budget for 2023/24, as set out in Appendix 1 to the submitted report, be endorsed.

9. That the value of the Council’s capital allowance from 2023/24 be declared as £49,512,000, as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.

Reasons for decision:

Part of the process of maintaining a balanced budget for the HRA is to undertake an annual rent review and assessment of other service and facilities charges.  Full Council will need to approve the HRA budget and any changes to rent and other services prior to the start of the financial year.

Other options:

There are other options available to Councillors in relation to the proposed rent and other services and facilities increases.

Note: This is an Executive Function save that approval of the final budget following Cabinet on 14^th February 2023 is a Council Function.

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Gilbert