Agenda item

To present to the committee the revised budget estimates for 2022/23 and the original estimates for 2023/24.

The Accountancy Manager introduced the report and advised that the position had worsened since the previous year. She highlighted the following key areas:

• Rent increases had been limited by Central Government to 7% which was lower than the normal amount which would have been 11.1%.
• This lower increase would have an impact of how we could support the maintenance and tenancy management of the properties.
• New tenancies were not limited to 7% and it was recommended that these were increased by 11.1%.
• Proposed that Shared Ownership Rents were increased by 7% instead of 13.1%
• There were five Independent Living schemes that had district heating systems, a cap had been introduced to protect tenants from the increase in costs in the short term. Changes in gas prices would be reviewed during the year, and if necessary, a revised charge would be applied in year.
• Exceptionally high increase in costs in repairs and maintenance due to the cost of labour and materials.
• The New Build and Development programme budget had been realigned, this would result in an increase in the budget and an effect on the viability of some schemes.
• Proposed increase to the acquisitions budget in line with the local authority housing fund.
• Increases in charges for tenants were unavoidable due to the increase in cost of providing services.
• Section 11 highlighted the MTFP position for the HRA, which showed a negative forecast for future years.

In response to Councillor Pearson regarding the Capital Programme and the New Build and Regeneration Programme, the Accountancy Manager confirmed that there had been some slippage from 2022/23 however there was a good chance that the schemes would be delivered next year. She advised that she could get more detail if Members required.

The Accountancy Manager confirmed in response to Councillor Hurst that she could provide a further breakdown on the works related to Radon which were included in the overall repairs and maintenance budget.

Proposed by Councillor Ross and seconded by Councillor Cornell.

Councillor Davies thanked the Accountancy Manager for their hard work and stated that he was glad they were making difficult decisions in terms of increasing rent by 7%.

Councillor Ross offered her thanks to the finance team and budget holders for putting the report together. She endorsed the difficult decision that had been made and drew Members attention to the difficult decisions which would have to be made in the future.

On being put to the vote, the Motion was carried unanimously.

The meeting adjourned at 8.47pm and resumed at 8:58pm.