Decision Details

That Cabinet recommends to Full Council to:

1. Approve the Housing Revenue Account Budget for 2020/21, and the indicative figures for 2021/22 to 2023/24;
2. Note the forecast outturn position for 2019/20;
3. Approve the movements in Reserves and Balances as presented in Appendix D;
4. Approve the average weekly rent for 2020/21 of £84.95 over a 50-week collection year, an average weekly increase of £1.90 or 2.3%; 
5. Note the new Rent Policy Statement and Rent Standard for 2020 with effective from 1st April 2020;
6. Approve the Service Charges and associated fees for 2020/21, Appendix B; and
7. Note the changes affecting public and private sector housing and welfare.

To bring together all relevant information to enable Members to review, consider and comment upon the Council’s Housing Revenue Account budgets, the average weekly housing rent, service and other charges and movements in reserves and balances, before making recommendations to Full Council on 22nd January 2020.

To advise Members of the wider housing and welfare changes that will impact on future service delivery.

Following four years of compulsory rent reduction, setting rents for 2020/21 below the maximum permitted under the Rent Standard is not recommended for the following reasons:

1) Under self-financing, the debt settlement figure that the Council can afford is based on a valuation of the Council’s housing stock.  This valuation is based on assumptions about income and need to spend over 30 years and that the Council will follow the Government’s social rent policy. Therefore, the main disadvantage of setting rents lower than that permitted by the Rent Standard is the loss of revenue over the 30 years of the HRA Business Plan, the ability to service the debt and the adverse impact this will have on investment in the Council’s existing housing stock and the delivery of the Housing Development Programme as currently planned.  There is an expectation from Government for the social housing sector to make the best use of their resources to provide the homes needed.  

2) The HRA has the option to borrow additional funds for future projects, as the borrowing cap has been removed, but the affordability of taking any additional borrowing would need to be assessed.  At this time there is no need to make use of any additional borrowing, but this situation could change if rental income streams are not maintained.