Draft Housing Revenue Account Budget 2020/21 and Rent Setting
Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: No
The Cabinet considered a joint report of Executive Director (Finance and Resources) and Deputy Chief Executive and Executive Director (Housing & Growth) setting out the Housing Revenue (HRA) budget for 2020/21, together with the information necessary to set a balanced budget as required by legislation.
1. That an average increase on secure tenancy rents of 2.7%, be endorsed.
2. That an average rent increase of 2.7% on shared ownership properties, be endorsed.
3. That an increase of 2.7% for garage rents to £12.02 per week for tenants and £14.42 for non-tenants (being £12.02 plus VAT), a rise consistent with the proposal for the main rent increase (all variants on a standard garage will receive a proportionate increase), be endorsed.
4. That the proposed rent charges in 1-3 above be effective from 6th April 2020.
5. That the South Essex Homes core management fee at £5,971,000 for 2020/21, be endorsed.
6. That South Essex Homes proposals for average increases of 6.36% in service charges and 16.69% in heating charges to reflect the actual costs incurred, be endorsed.
7. That the following appropriations be endorsed
• £60,000 to the Repairs Contract Pensions Reserve;
• £5,319,000 to the Capital Investment Reserve; and
• £8,708,000 from the Capital Investment Reserve.
8. That subject to 1-7 above, the HRA budget for 2020/21 as set out in Appendix 1 to the submitted report, be endorsed.
9. That the value of the Council’s capital allowance for 2020/21 be declared as £57,261,000, 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.
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 11th February 2020 is a Council Function
Referred direct to Policy and Resources Scrutiny Committee
Cabinet Member: Cllr Gilbert
Report author: Joe Chesterton
Publication date: 05/02/2020
Date of decision: 16/01/2020
Decided at meeting: 16/01/2020 - Cabinet