Decision details

Housing Revenue Account (HRA) Budget and Rent Setting Report 2020/21

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Decisions:

The Cabinet considered a report of Executive Director (Finance and Resources) and Deputy Chief Executive and Executive Director (Housing & Growth) setting out the Housing Revenue Account (HRA) budget for 2020/21, together with the information necessary to set a balanced budget as required by legislation.  This item was considered by the Policy and Resources Scrutiny Committee.

 

Recommended:-

 

1. That an average rent increase of 2.7% on all tenancies, be approved;

 

2. That an average rent increase of 2.7% on shared ownership properties, be approved.

 

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 approved.

 

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 £6,114,000 for 2020/21, be approved.

 

6. That the 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 approved.

 

7. That the following appropriations be approved:

 

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

· £5,126,000 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 approved.

 

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 Recommendations

 

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

Cabinet Member: Cllr Gilbert

Report author: Joe Chesterton

Publication date: 12/02/2020

Date of decision: 11/02/2020

Decided at meeting: 11/02/2020 - Cabinet

Accompanying Documents:

 

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