Issue - meetings
Draft Housing Revenue Account Budget 2022/23 and Rent Setting
Meeting: 10/02/2022 - Policy and Resources Scrutiny Committee (Item 694)
694 Draft Housing Revenue Account (HRA) Budget and Rent Setting Report 2022/23 PDF 388 KB
Minute No. 604 (Cabinet Agenda Item No. 8 (Report Books 1a and 1b, circulated separately) refer)
Referred direct by Cabinet
Additional documents:
- Appendix 1 HRA, item 694 PDF 188 KB
- Appendix 2, item 694 PDF 22 KB
- Appendix 3, item 694 PDF 17 KB
- Webcast for Draft Housing Revenue Account (HRA) Budget and Rent Setting Report 2022/23
Minutes:
The Committee considered Minute 604 of the meeting of the Cabinet held on 13 January 2022, which had been referred directly to the Committee for scrutiny, together with a joint report of the Executive Director (Finance and Resources) and Executive Director (Housing and Growth), setting out the Housing Revenue Account (HRA) budget for 2022/23, together with the information necessary to set a balanced HRA budget.
Resolved:
That the following decisions of the Cabinet be noted:
“1. That an average rent increase of 4.10% on all tenancies, be endorsed.
2. That an average rent increase of 4.10% on shared ownership properties, be endorsed.
3. That an increase of 4.10% for garage rents to £12.70 per week for tenants and £15.24 for non-tenants (being £12.70 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 South Essex Homes core management fee at £6,648,000 for 2022/23, be endorsed.
5. That South Essex Homes proposals for average increases of 10.88% in service charges, be endorsed.
6, That South Essex Homes proposals for an average 16.95% reduction in heating charges for sheltered housing tenants and an average 4.42% increase in heating charges for hostel tenants to reflect the actual costs incurred, be endorsed.
7. That the following appropriations be endorsed:
• • £60,000 to the Repairs Contract Pensions Reserve;
• • £2,978,000 to the Capital Investment Reserve and
• • £8,309,000 from the Capital Investment Reserve
8. That subject to resolutions 1 to 7 above, the HRA budget for 2022/23, as set out in Appendix 1 to the submitted report, be approved.
Note: This is an Executive Function, save that approval of the final budget following Cabinet on 15 February 2022 is a Council Function
Cabinet Members: Councillors I Gilbert and A Jones
Meeting: 13/01/2022 - Cabinet (Item 604)
604 Draft Housing Revenue Account Budget 2022/23 and Rent Setting PDF 388 KB
Report of Deputy Chief Executive and Executive Director (Finance and Resources) to follow
Additional documents:
- Appendix 1 HRA, item 604 PDF 188 KB
- Appendix 2, item 604 PDF 22 KB
- Appendix 3, item 604 PDF 17 KB
- Webcast for Draft Housing Revenue Account Budget 2022/23 and Rent Setting
Decision:
The Cabinet considered a joint report of the Executive Director (Finance and Resources) and Executive Director (Housing & Growth) setting out the Housing Revenue (HRA) budget for 2022/23, together with the information necessary to set a balanced budget as required by legislation.
Resolved:
1. That an average rent increase of 4.10% on all tenancies, be endorsed.
2. That an average rent increase of 4.10% on shared ownership properties, be endorsed.
3. That an increase of 4.10% for garage rents to £12.70 per week for tenants and £15.24 for non-tenants (being £12.70 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 South Essex Homes core management fee at £6,648,000 for 2022/23, be endorsed.
5. That South Essex Homes proposals for average increases of 10.88% in service charges, be endorsed.
6, That South Essex Homes proposals for an average 16.95% reduction in heating charges for sheltered housing tenants and an average 4.42% increase in heating charges for hostel tenants to reflect the actual costs incurred, be endorsed.
7. That the following appropriations be endorsed:
· £60,000 to the Repairs Contract Pensions Reserve;
· £2,978,000 to the Capital Investment Reserve and
· £8,309,000 from the Capital Investment Reserve
8. That subject to resolutions 1 to 7 above, the HRA budget for 2022/23, as set out in Appendix 1 to the submitted report, be approved.
9. That the value of the Council’s capital allowance for 2022/23 be declared as £76,915,000, 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 15th February 2022 is a Council Function
Referred direct to Policy and Resources Scrutiny Committee
Cabinet Members: Cllr Gilbert and Cllr Jones
Minutes:
The Cabinet considered a joint report of the Executive Director (Finance and Resources) and Executive Director (Housing & Growth) setting out the Housing Revenue (HRA) budget for 2022/23, together with the information necessary to set a balanced budget as required by legislation.
Resolved:
1. That an average rent increase of 4.10% on all tenancies, be endorsed.
2. That an average rent increase of 4.10% on shared ownership properties, be endorsed.
3. That an increase of 4.10% for garage rents to £12.70 per week for tenants and £15.24 for non-tenants (being £12.70 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 South Essex Homes core management fee at £6,648,000 for 2022/23, be endorsed.
5. That South Essex Homes proposals for average increases of 10.88% in service charges, be endorsed.
6, That South Essex Homes proposals for an average 16.95% reduction in heating charges for sheltered housing tenants and an average 4.42% increase in heating charges for hostel tenants to reflect the actual costs incurred, be endorsed.
7. That the following appropriations be endorsed:
· £60,000 to the Repairs Contract Pensions Reserve;
· £2,978,000 to the Capital Investment Reserve and
· £8,309,000 from the Capital Investment Reserve
8. That subject to resolutions 1 to 7 above, the HRA budget for 2022/23, as set out in Appendix 1 to the submitted report, be approved.
9. That the value of the Council’s capital allowance for 2022/23 be declared as £76,915,000, 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 15th February 2022 is a Council Function
Referred direct to Policy and Resources Scrutiny Committee
Cabinet Members: Cllr Gilbert and Cllr Jones