Agenda item

Report of the Director of Economic Growth and Neighbourhood Services

The Director of Economic Growth and Neighbourhood Services submitted a report (previously circulated) requesting that consideration be given to proposals for the revenue budget, rent levels and service charges for the Council’s Housing Revenue Account (HRA) for the financial year 2019/20 in the context of the HRA Medium Term Financial Plan to 2022/23, and the 30 year business plan.

The submitted report stated that the Government had introduced a compulsory 1% reduction in social and affordable rents through the Welfare Reform and Work Bill 2015, and that therefore all Council tenants would receive an average 61p reduction in weekly rent. It was stated that, where appropriate, some service charges had an inflationary increase. The submitted report highlighted that the Government had lifted the borrowing cap on the HRA, and this meant that the Council could increase its housing capital programme by £12m in 2019/20 alone, which would be supplemented by a Homes England grant, which meant that the Council would be able to build 100 affordable homes per annum over the next 10 years.

RESOLVED - (a) That an average weekly social rent reduction of 1% for 2019/20 be implemented, giving an average social rent of £70.53 and affordable rent of £77.92;

(b) That garage rents and service charges are increased as detailed in Table 3 of the submitted report;

(c) That the budget, as detailed in Appendix 1 of the submitted report, be approved.

(d) That the Housing Business Plan, as detailed in Appendix 2 of the submitted report, be agreed.

REASON - To enable the Council to deliver an appropriate level of service to tenants to meet housing need and to support the economic growth of the Borough through housing development.