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.

Resolved:-

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

2.    That an average rent increase of 3.39% on shared ownership properties, be endorsed.

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

4.    That the proposed rent changes, set out in 1-3 above, to be effective from 4 April 2016, be endorsed.

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

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

7.    That the proposal (from 1^st April 2016) for South Essex Homes to be charged with setting and recovering service, heating and water charges directly, on a cost recovery only basis, and for their management fee to be reduced accordingly, be endorsed.

8.    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 endorsed.

9.    That subject to 1 to 8 above, the HRA budget, as set out in Appendix 1 to the report, be endorsed.

10. 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, be endorsed.

Reason for Decision

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

Other Options

None

Note:- This is an Executive Function, save the approval of the final budget following Cabinet on 11^th February 2016 is a Council Function.
Referred direct to Policy and Resources Scrutiny Committees.
Executive Councillor:- Norman