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Details

Status:
Implemented
Business Item
Housing Revenue Account Budget Report 2021/22
Ref.
ES/0662
Is a Key Decision:
No
Decision Type:
Committee
Decision Maker:
Cabinet
Date of Decision
Tue 2 Feb 2021
Show on Forward Plan
No
Description
Report of the Cabinet Member with responsibility for Resources and the Cabinet Member with responsibility for Housing
Matter for Decision (to consider...)
That it be recommended to Full Council that it:


1. Approve the Housing Revenue Account Budget for 2021/22, and the indicative figures for 2022/23 to 2024/25;



2. Note the revised outturn position for 2020/21;



3. Approve the movements in Reserves and Balances as presented in Appendix D;



4. Approve the average weekly rent for 2021/22 of £89.30 over a 50-week collection year, an average weekly increase of £0.65 or 0.74%; 



5. Note the effects of COVID-19 on the service in 2020/21;



6. Approve the Service Charges and associated fees for 2021/22, Appendix B; and



7. Note the changes affecting public and private sector housing and welfare.
Service Area
Financial Services, Corporate Performance & Risk Management
Service Area 2
Not Applicable
Contact for Background Papers:

Brian Mew

Chief Finance Officer and Section 151 Officer

brian.mew@eastsuffolk.gov.uk

Background Papers:
As set out in the report
Is Decision District Wide
Yes
Decision Made

That it be recommended to Full Council that it:

 

1. Approves the Housing Revenue Account Budget for 2021/22, and the indicative figures for 2022/23 to 2024/25;

 

2. Notes the revised outturn position for 2020/21;

 

3. Approves the movements in Reserves and Balances as presented in Appendix D of report ES/0662;

 

 4. Approves the average weekly rent for 2021/22 of £89.30 over a 50-week collection year, an average weekly increase of £0.65 or 0.74%; 

 

 5. Notes the effects of COVID-19 on the service in 2020/21;

 

 6. Approves the Service Charges and associated fees for 2021/22, Appendix B of report ES/0662; and

 

 7. Notes the changes affecting public and private sector housing and welfare.

Reason for Decision

1. 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 24 February 2021.

 

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

Alternative Options Considered and Rejected

Following four years of compulsory rent reduction, setting rents from 2020/21 below the maximum permitted under the Rent Standard was 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. 

Any Declarations of Interest Declared
None.
Any Dispensation Granted
None.

Decision Criteria

This Decision does not contain any decision criteria records.

Wards

Aldeburgh and Leiston; Beccles and Worlingham; Bungay and Wainford; Carlford and Fynn Valley; Carlton and Whitton; Carlton Colville; Deben; Eastern Felixstowe; Framlingham; Gunton and St Margarets; Halesworth and Blything; Harbour and Normanston; Kelsale and Yoxford; Kesgrave; Kessingland; Kirkley and Pakefield; Lothingland; Martlesham and Purdis Farm; Melton; Orwell and Villages; Oulton Broad; Rendlesham and Orford; Rushmere St Andrew; Saxmundham; Southwold; Western Felixstowe; Wickham Market; Woodbridge; Wrentham, Wangford and Westleton

Topics

This Decision does not contain any Topic records

Overview and Scrutiny

This Decision does not contain any Overview and Scrutiny records.

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Decision History

Date & Time CreatedUser Full NameStatus DescriptionDetails
 Page 1 of 5, items 1 to 10 of 45.
21/01/2021 10:50:06Matt MakinBusiness Item Created 
21/01/2021 10:50:06Matt MakinCommittee AddedCabinet
21/01/2021 10:50:06Matt MakinMeeting Added02/02/2021 6:30PM
21/01/2021 10:54:07Matt MakinWard AddedAldeburgh and Leiston
21/01/2021 10:54:07Matt MakinWard AddedBeccles and Worlingham
21/01/2021 10:54:07Matt MakinWard AddedBungay and Wainford
21/01/2021 10:54:07Matt MakinWard AddedCarlford and Fynn Valley
21/01/2021 10:54:07Matt MakinWard AddedCarlton and Whitton
21/01/2021 10:54:07Matt MakinWard AddedCarlton Colville
21/01/2021 10:54:07Matt MakinWard AddedDeben

Approval/Comments

No history found.