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 2020/21 in the context of the HRA Medium Term Financial Plan to 2023/24, and the 30 year business plan.

The submitted report stated that, the first time since 2016/17, Local Authorities had once again been given the discretion to inflate rents by CPI plus 1%, which meant an average £2.02 increase in weekly rents, and after four consecutive years of compulsory reductions of rent minus 1% it was recommended that rents be increased to the maximum allowed. It was also recommended that, where appropriate, service charges had an inflationary increase.

The submitted report highlighted that as the Government had lifted the borrowing cap on the HRA, and this meant that the Council could borrow an extra £9m to fund its housing capital programme in 2020/21, 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 rent increase of 2.7% for 2020/21 be implemented giving an average social rent of £71.30 and affordable rent of £82.55;

(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.

(e) That the Director of Economic Growth and Neighbourhood Services be given delegated powers to proceed with new build schemes for affordable rent using the funding as identified in Paragraph 16 of the submitted report.

(f) That the Director of Economic Growth and Neighbourhood Services be given delegated powers to acquire dwellings in the private sector as opportunities arise, particularly as part of regeneration initiatives as highlighted in Paragraph 17 of the submitted report.

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.