Agenda item

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

Councillor Ross, Chair of Housing Committee, introduced the report and informed Council that the financial position had worsened since the previous year. She highlighted the following key points:

·       Table 1 on page 195 detailed the changes to the budget from 2022/23.

·       Rents were proposed to be increased by the 7% limit set by Central Government which was lower than the Consumer Price Index (CPI) plus 1% which would have been 11.1%.

·       New tenancies were not limited to 7% and it was recommended that these were increased by 11.1%.

·       Shared Ownership Rents were now proposed to be capped at the 7% increase in line with social rents instead of the 13.1% discussed at Housing Committee.

·       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.

·       Independent Living (IL) - Proposed costs had again been capped at the residential rate and IL tenants were eligible for housing benefits and universal credit to support with costs.

·       Garage rents were set to rise by 7%.

·       A new Tenancy Support Fund was proposed to support tenants with increased costs and £200k had been set aside for this.

·       Additional budget may be requested in year to support the ongoing works with Damp and Mould in Council Homes.

·       The New Build and Development programme budget had been realigned, this would result in an increase in the budget and would effect the viability of some schemes.

·       Proposed increase to the acquisitions budget in line with the Local Authority Housing Fund.

·       Section 8 detailed the transfers to and from earmarked reserves and whilst the budget had been balanced for 2023/24 and 2024/25, the balances were lower than recommended. There would be a full review of the housing service scheduled to take place in 2023/24.

 

In response to Councillor Davies, Councillor Ross explained that since the tragic incident of the death of a toddler due to the property conditions, Central Government had required all social housing providers to investigate damp and mould issues as a matter of urgency. Stroud District Council (SDC) had already begun looking into this. It was thought that the cost-of-living crisis had had an adverse effect on damp and mould cases due to the financial difficulties associated with heating homes.

 

Proposed by Councillor Ross and seconded by Councillor Schoemaker.

 

Councillors Studdert-Kennedy and Kay thanked Councillor Ross and Officers for the report.

 

Councillor Davies thanked Central Government for their contributions and the rent cap. He requested that if there were damp and mould issues within the district, this should be highlighted to Councillors and deeper analysis should be completed to understand whether it was due to lifestyle choices or building inadequacy. He concluded by stating that he would be supporting the budget.

 

Councillor Aldam paid tribute to the toddler who had passed away as mentioned earlier in the meeting and debated the generosity of contributions received from Central Government in comparison with the rising food bank figures in the District.

 

Councillor Schoemaker echoed Councillor Aldam’s comments.

 

Councillor Ross commended the Officers for the report and expressed her support for the councils housing stock.

 

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

 

FOR: 37 Votes

Councillors

Beki Aldam

Martin Baxendale

Natalie Bennett

Catherine Braun

Doina Cornell

Kate Crews

Laurie Davies

Stephen Davies

Trina Davis

Robin Drury-Layfield

Jonathan Edmunds

Christopher Evans

Helen Fenton

Colin Fryer

Lindsey Green

Trevor Hall

Nick Hurst

Steve Hynd

George James

Julie Job

Haydn Jones

John Jones

Norman Kay

Jenny Miles

Gill Oxley

Loraine Patrick

Martin Pearcy

Steve Robinson

Mattie Ross

Mark Ryder

Lucas Schoemaker

Nigel Studdert-Kennedy

Haydn Sutton

Brian Tipper

Ken Tucker

Chloe Turner 

Rich Wilsher

 

AGAINST: 0 Votes

 

ABSTENTIONS: 0 Votes

 

RESOLVED That:

a)  The revised HRA revenue budget for 2022/23 and original budget 2023/24 are approved

b)  The movement to and from HRA balances and capital reserves as detailed in Appendix B and section 9 are approved

c)  That from 1 April 2023:

i.     Social rents and affordable rents are increased by 7%, in line with national rent guidance

ii.   Garage rents are increased by 7%

iii. Landlord service charges are increased by 7%, except Independent Living Scheme charges and district heating charges which are increased as set out in Appendix A

iv. Shared ownership rents are increased by 7%

d)  That the HRA Capital Programme for 2022/23 to 2026/27, as detailed in Appendix C, be included in the Council’s Capital Programme.