Decision - Housing Revenue Account Budget 2011/12

To agree the budget estimates including savings proposals, reserve levels, rent and service charge levels, for the Housing Revenue Account (HRA) 2011/12 and recommend approval by Full Council.’

(1)    That Cabinet recommends Council to:

(a)       Approve the budget for 2011/12 as shown in Appendix 1.

(b)       Approve individual rent increases and decreases in line with rent restructuring principles as determined by the Government.

(c)        Approve the changes to fees and charges as detailed in paragraph 3.17 to 3.26.

The Local Government and Housing Act 1989 requires each Local Authority to formulate proposals relating to income from rent and charges, expenditure on repairs, maintenance, supervision and management and any other prescribed matters in respect of the HRA. In formulating these proposals using best estimates and assumptions the Authority must set a balanced account. This budget report provides a breakeven budget and recommends rent increases in line with current government guidance.

There are no alternative options proposed. Rents are set in accordance with the Government’s rent restructuring guidance and increases are in line with the Housing Subsidy Determination.  The Housing Subsidy Determination controls rent setting by removing resources from local authorities through non compliance.

The budget proposals also includes maintaining the current service provision with improvements as identified in the Service Improvement Plan and investment in priorities such as Turning the Tide strategy.  It is possible for alternative options to be considered such as increasing or reducing service provision, which would result in a reduction or increase in the revenue contributions to the capital programme.   However, officers recommend that the budget proposals provide the appropriate service provision whilst ensuring that the revenue contributions to capital are in line with the current HRA Business Plan.