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Cabinet received report ES/1037 by the Cabinet Members with responsibility for Resources and Housing.
The Cabinet Member with responsibility for Resources stated that the report brought together the Housing Revenue Account Budget for the period 2022/23 to 2025/26, with a forecasted position for 2021/22 and a summary of its reserves and balances. The HRA budgets were fully funded from existing funds to meet the Council’s HRA spending plans, including the Capital Investment Programme and reserve balances as per the HRA Financial Business Plan.
Under the new 2020 Rent Standard, local authorities could increase rents by up to CPI +1%. The September CPI value must be used, which was 3.1%, giving the Council the option to increase rents by up to 4.1%.
Social rents were based on a formula rent set by Government and Affordable rents although could be up to 80% of market rent, were set based on the Local Housing Allowance. The Council continued to collect rent and service charges on a 50-week basis unless being let as temporary accommodation. The proposed rent gave an average weekly rent of £92.19 for 2022/23; an increase of £1.97 compared to 2021/22.
Service charges could only recuperate the cost of providing a service. The proposed average weekly General Service Charge for Grouped Homes for 2022/23 is £14.57; an increase of £0.41 compared to 2021/22.
The budget proposals gave a forecast HRA working balance for 2022/23 of £3.122 million, maintaining it well above the minimum acceptable limit of 10% of total income.
The Leader, after commenting that he fully supported the recommendations within the report, referred to the big ambitions in respect of the HRA and the money that needed to be spent on properties raising their environmental standards.
The Cabinet Member with responsibility for Housing referred to the wish to bring the houses up to the carbon neutral standard; at the moment the cost of this work was unknown. Referring to Affordable housing, Councillor Kerry commented that the best option for this was currently through the Planning system, with 106 Agreements and local developers.
Councillor Byatt referred to paragraph 3.15 of the report and the reference to "The heating charges are based on the previous full year's costs, hence no real increase on charges. Any major increases relating to the current utility crisis will be addressed in the 2023/24 service charges." Councillor Byatt asked if ESC might consider easing any charges when the time came. The Leader responded that the budget situation would be looked at in 12 months time, and reflecting on that; at the moment there were no certainties in respect of fuel costs he stated.
On the proposition of Councillor Cook, seconded by Councillor Kerry, it was by unanimous vote
RESOLVED
That it be recommended to Full Council:
1. That the HRA budget for 2022/23, and the indicative figures for 2023/24 to 2025/26, be approved
2. That the Revised outturn position for 2021/22 be noted
3. That the movements in HRA Reserves and Balances be approved
4. That the proposed rent increase of up to 4.1% (September 2021 CPI + 1%) as per the Rent Standard 2020 be approved
5. That the service charges and associated fees for 2022/23 be approved
6. That the Rent and Service Charges to be charged over a 50-week period, unless being used for Temporary Accommodation when a 52-week period will be applied, be approved
7. That the changes affecting public and private sector housing and welfare be noted
8. That the effects of COVID-19 to the HRA be noted