Agenda item

Housing Committee Budget Estimates – Revised 2021/22 and Original 2022/23 and Housing Revenue Account (HRA) Medium Term Financial Plan 2021/22 – 2025/26

To present to the committee the revised budget estimates for 2021/22 and the original estimates for 2022/23.

Minutes:

The Accountancy Manager presented the above report and highlighted the main points which included:

The General Fund

·        Table 1 on page 17 of the document pack set out the summary of the proposed budget changes.

·        Table 2 on page 18 showed a breakdown of the proposed budget adjustments which totalled £94k.

The General Fund Capital

·        The £500k budget that had been set aside for temporary accommodation was to be removed from the Capital Programme due to no longer being required.

·        The Green Homes Local Authority Delivery Scheme (LADS) and Home Upgrade Grants for Sustainable Warmth budgets were to be increased in line with external funding.

HRA

·        Dwelling rents and garage rents were to increase by 4.1% in line with both the budget strategy and the regulator of social housing.

·        Table 6 on page 25 of the document pack showed the proposed changes. The £1.2 million of changes would cause the closing balances of the HRA reserves to be lower than the recommended minimum levels. The majority of those changes were short term and wouldn’t severely impact the longer term.

·        Graph 1 on page 26 showed the longer term forecast within which the balance of the HRA would drop well below the recommended minimum levels. The Accountancy Manager explained there would be intervention before it got to that level and these figures helped identify what changes needed to be put in place in order to bring the financial position back into a sustainable position.

HRA Capital Programme

·        The retrofit works, recommended by Housing Committee on the 14 September, had now been included in the figures for Major Works.

·        The Major works, New homes and Regeneration Programme and the Independent Living Modernisation Programme had all had their capital schemes re-profiled.

·        The New homes and Regeneration Programme had seen a spend increase of £39k which was proposed to be covered from the 2021/22 contingency fund.

·        £50k had been assigned to the May Lane site in Dursley to be appropriated from the General Fund to the HRA subject to a market valuation.

·        The Independent Living Modernisation Programme had the same budget however, it was proposed for 3 schemes to be completed in 2022/23.

 

Councillor Fryer raised concerns regarding inflation and whether that would result in a significant drop in income. The Accountancy Manager confirmed there was always an uncertainty with inflation and explained to the Committee that should inflation rise above the proposed rental increases, it would add further pressure onto the HRA.

 

In response to questions the Accountancy Manager gave the following answers:

·        A number of SDC properties had been identified for temporary accommodation use for families. This included 3 SDC properties and an additional 7 tenants on a short term licence, who could potentially take over tenancy of the properties they currently resided in.

·        There were varied levels of risk. They used a broad level of risk to identify the budget strategy over the longer term.

·        Service charges could be altered if the tenant was provided with 28 days’ notice. This was not the usual process but could be considered by the Housing Committee if they felt it necessary.

·        The costs surrounding the former Ship Inn site were included within the budget forecast and consisted of £1.83m.

 

Councillor Schoemaker proposed and Councillor Fryer seconded.

 

Councillor Housden stated that if the former ship inn site was removed from the HRA, there would be a net gain of £1.83m. The Councillors debated this topic at length.

 

After being put to a vote, the Motion was carried unanimously.

 

RECOMMEND TO STRATEGY & RESOURCES AND COUNCIL

That:

a)     The revised General Fund Housing revenue budget for 2021/22 and original budget 2022/23 are approved; and

b)     The Fees and Charges listed in Appendix A are approved; and

c)     The revised HRA revenue budget for 2021/22 and original budget 2022/23 are approved; and

d)     The movement to and from HRA balances and capital reserves as detailed in Appendix C and section 11 are approved; and

e)     That from 1 April 2022:

              i.    Social rents and affordable rents are increased by 4.1% (CPI +1%), in line with national rent guidance

            ii.    Garage rents are increased by 4.1%

          iii.    Landlord service charges are increased by 4.1%

f)      That the General Fund Housing Capital Programme, as detailed in Section 4, be included in the Council’s Capital Programme; and

g)     That the HRA Capital Programme for 2021/22 to 2025/26, as detailed in Appendix D, be included in the Council’s Capital Programme; and

h)     To delegate authority to the Strategic Director of Resources to appropriate land and buildings at 11/11A May Lane (as shown on the plan at Appendix E) into the HRA and the New Build Programme from the General Fund, once a market valuation has been received; and

i)       To delegate authority to the Head of Property Services to continue work on progressing this site with land to the rear of Parsonage Street, Dursley, including opening negotiations to acquire land from 3rd party private owners.

 

Supporting documents: