Issue - meetings

Councillor Lisa Homan stated that this report recommended a rent increase of 1.5% this year, including shared ownership rents (0.5% based on the Consumer Prices Index – CPI – at September 2020 plus 1% in line with government policy). The CPI had been lower than expected causing some pressures on the Housing Revenue Account (HRA) going forward. However, the rents were still low compared to other London boroughs and the reserves were average.

Councillor Adronie Alford expressed her concern that this HRA account had not been provided at the last Economy, Housing and the Arts Policy and Accountability Committee (EHA PAC) in January. She had concerns about the report and thought it was unacceptable that it was not possible to scrutinise it. She was concerned about the balances going down considerably.

Councillor Homan acknowledged that the report did not go to EHA PAC, perhaps because the PAC meetings had been merged in January and this report was not included. But the report did go to the Housing Representatives’ Forum, so residents had an opportunity to comment and support it.

The Leader apologised that this report was not brought forward to the PAC meeting and stressed that he would find out the reason it was missed from the agenda. Nevertheless, he was glad that residents had backed the report at the Housing Representatives’ Forum. He added that the Council was determined to keep rents and service charges low and balances strong.

Councillor Homan stated that there were two external factors that would explain the current level of reserves. The first was the impact of the pandemic and the second was the compliance-based capital programme with targets constantly moving due to new regulations regularly being introduced by the government.

AGREED UNANIMOUSLY BY CABINET:

That Cabinet agrees:

·      To approve the Housing Revenue Account 2021/22 budget for Council homes as set out in Table 1.

·      To approve plans to deliver on-going annual revenue savings of £3.8million per annum from 2021/22 rising to £5.7million per annum from 2024/25 (see Appendix 1).

·      To approve a rent increase of 1.5% (based on the Consumer Prices Index (CPI) at September 2020 plus 1% in line with government policy) from 5 April 2021 which equates to an average weekly increase for tenants of £1.64 in 2021/22.

·      To approve an increase to shared ownership rents of 1.5% (based on the CPI at September 2020 plus 1% in line with government policy) from 5 April 2021.

·      To approve an increase to tenant service charges of 0.5% (based on the Consumer Prices Index (CPI) at September 2020) from 5 April 2021 which equates to an average weekly increase for tenants of £0.04 in 2021/22.

·      To approve an increase to the management fee for temporary on licence properties of CPI (0.5% as at September 2020) from 5 April 2021.

·      To delegate authority to the Strategic Director for Economy in consultation with the Cabinet Member for Housing to agree the average increase in water charges for homes supplied by a bulk meter.

·      To increase  ...  view the full minutes text for item 9