Issue - meetings
Housing Revenue Account Budget 2018/19 and Rent Setting
Meeting: 13/02/2018 - Cabinet (Item 736)
736 Housing Revenue Account Budget 2018/19 and Rent Setting 
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Additional documents:
Minutes:
The Cabinet considered a joint report of the Deputy Chief Executive (People) and Director for Finance and Resources setting out the Housing Revenue Account (HRA) budget for 2018/19, together with the information necessary to set a balanced budget as required by legislation. This item had been considered by Policy and Resources Scrutiny Committee at its meeting on 31st January 2018.
Recommended:-
1. That a rent reduction of 1% on secure tenancies, as required by the Welfare Reform and Work Act 2016, be approved.
2. That an average rent increase of 6.04% on shared ownership properties, be approved.
3. That the proposed rent changes in 1 and 2 above be effective from 2nd April 2018.
4. That the increases in other charges as set out in section 5 of the submitted report, be approved.
5. That the proposed management fee and the proposed increases in service charges and heating charges by South Essex Homes, as set out in section 6 of the submitted report, be approved.
6. That the appropriations to HRA earmarked reserves, as set out in section 9 of the submitted report be approved.
7. That subject to 1-6 above, the HRA budget as set out in Appendix 1 to the submitted report, be approved.
8. That the HRA Medium Term Financial Plan as set out in section 10 and Appendices 2 and 3 to the submitted report be noted.
9. That the value of the Council’s capital allowance for 2018/19 be declared as £23.197M, as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.
Reason for Recommendation
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 need to approve the HRA budget prior to the start of the financial year.
Other Options
Given the statutory nature of the required reduction in rents, there is limited scope to alter the budget.
Note:- This is a Council Budget Function, not eligible for call in by virtue of Budget and Policy Framework Procedure Rule 1.1(b)
Executive Councillor:- Flewitt
