The Cabinet considered a joint report of the Executive Director (Finance and Resources) and Executive Director (Environment and Place) setting out the Housing Revenue (HRA) budget and rent setting for 2024/25.

Resolved:

1. That an average rent increase of 7.7% on all tenancies, be endorsed.

2. That an average rent increase of 7.7% on shared ownership properties, be endorsed. 

3. That an increase of 10% for garage rents to £15.38 per week for tenants and £18.46 for non-tenants (being £15.38 plus VAT), a rise consistent with the standard approach taken across the range of City Council’s fees and charges for 2024/25, be endorsed.  All variants on a standard garage will receive a proportionate increase. 

4. That South Essex Homes core management fee be endorsed at £7,678,000 for 2024/25. 

5. That the South Essex Homes proposals for average decreases of 3.1% in service charges to reflect the estimated costs incurred be endorsed for 2024/25. 

6. That the South Essex Homes proposals for an average 7.4% decrease in heating charges for sheltered housing tenants and for hostel tenants to reflect the estimated costs incurred be endorsed for 2024/25. 

7. The following appropriations be endorsed: 

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

• £4,761,000 to the Capital Investment Reserve. 

• £8,015,000 from the Capital Investment Reserve. 

8. That, subject to the approval of resolutions 1 through to 7 above, the HRA budget for 2024/25 as set out in Appendix 1 to the submitted report, be endorsed.

9. That the value of the Council’s capital allowance from 2024/25 be declared as £57,098,000 as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.

10. That the developing draft 30-year Housing Revenue Account Business Plan (structure and text only), as set out in Appendix 4 to the report, be noted and any minor amendments be completed by the Executive Director (Environment and Place), in consultation with the Cabinet Member for Housing and Planning.  The final version of the Business Plan will be submitted to Cabinet for approval in February 2024.

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 13^th February 2024 is a Council Function.

Referred direct to Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Garston