Issue - meetings

Report of the Deputy Chief Executive (Corporate Direction).

Further to discussion on the financial reports, it was moved by Councillor Lynch, seconded by Councillor Bray and

RESOLVED –

(i)            The revised Housing Revenue and Housing Repairs Account budgets for 2014/15 be approved;

(ii)           The Housing Revenue and Housing Repairs Account budgets for 2015/16 be approved;

(iii)          The proposed movement in reserves as outlined in appendix 3 to the report be approved.

Report of the Deputy Chief Executive (Corporate Direction).

The Scrutiny Commission reviewed the Housing Revenue Account (HRA) budget including the housing repairs account and was briefly updated on the increase in rents. It was noted that the rents for 2015/16 should have increased by an average of 9.76% in order to ‘catch up’ with the position calculated using the new formula. The lack of increases in line with formula rent in recent years had resulted in the HRA being £441,000 below what it would have been with formula rent increases. It was reported that for 2015/16 only new leases would let at formula rent, as a compromise.

Discussion ensued with regard to ‘convergence’, which aimed to bring council rents in line with private sector rented accommodation, and it was suggested that applying this to new properties would assist in closing the gap between the current rental income and the position, had we been charging formula rents. Officers explained that by using formula rent, the point of convergence would be naturally reached. The subject of ‘target rent’ was also raised, and officers agreed to bring a report to the next meeting on the various rental structures and how they worked.

RESOLVED –

(i)            The revised Housing Revenue and Housing Repairs account budgets for 2014/15 be noted;

(ii)           The Housing Revenue and Housing Repairs account budgets for 2015/16 be noted and RECOMMENDED to Council;

(iii)          The proposed movement in reserves be noted;

(iv)         A report be brought to the next meeting on rents.