Agenda item - Housing Revenue Account Budget 2014/15

Extract from the proceedings of the Housing Committee meeting held on the 15^th January 2014, together with a report of the Executive Director of Environment, Development & Housing (copies attached).

74.1         Councillor Randall introduced the report which had been referred from the Housing Committee meeting held on 15 January 2014 for information. He stated that the Housing Revenue Account was a ring fenced fund to be used for the benefit of tenants, and the Housing Committee had discussed proposals in relation to service charges in detail. In relation to high rise blocks it had been the established norm that all tenants would share the costs of lifts and lighting; however, it was now proposed that only those in high rise blocks be charged 85p per week for lighting and £1.10 per week lifts. Most of the high rise blocks in the city were approximately the same age, and the lifts were coming to the end of their usable life; there was a lift replacement programme, but it would take some years to recover the costs.

74.2         In relation to scooter storage where new purpose built sheds had been installed with charging points there would a flat rate fee of £4 each week. It was calculated that only 1400 tenants would be affected, and the remainder would have the charges covered through Housing Benefits. It was considered that the increased charges for sheltered housing was proportionate given that there had been no increase since 2003, and the Council offered site based management which was considered a crucial service. In relation to some of the consultation around this issue it was noted that it had not been possible to consult at the November round of Area Panels as the budget had not been known until late December. It was considered that this change was appropriate as some of these matters had been left unchanged for some time, and further consultation was due with groups such as the Sheltered Housing Group.

74.3         Councillor Peltzer Dunn thanked Councillor Randall for his introduction of the item, and went on to express his concern with the proposed charges; stating that the charges would penalise those residents who would suffer the most as part of this. He went on to add that the Council needed to provide safe and clean access areas to building, and he accepted that the costs should be shared amongst tenants, but felt the proposed charges would be harder to justify when the charges for communal gardens and grounds were considered.

74.4         Councillor Mears stated that she did not support these proposed changes as they were being used as mechanism to divert funds from the HRA into the general fund, and there was concern that tenants had not been properly consulted on these matters. Concern was also expressed in relation to the staffing implications of these changes at a time when the Council continued to look very carefully at budgets. Councillor Mears added she agreed with the comments made by Councillor Peltzer Dunn and hoped the Housing Management Consultative Sub-Committee would give tenants ‘a voice’ through this process.

74.5         Councillor Barnett stated that these proposals were an ‘attack on tenants’ and stated that the potential costs could be a huge impact on tenants with fixed incomes. She added that the HRA account was in surplus this year and urged the administration to reconsider.

74.6         Councillor Simson noted, in her role as Chair of the Budget Scrutiny, that this was the first shift of funds from the HRA to the general fund, and provided more flexible opportunities for what the fund would be used for.

74.7         Councillor Randall responded to the debate, and stated that the current situation with regard to the lifts was unfair and for most tenants these changes to costs would be covered through housing benefits. There was also increased work in relation to community projects being undertaken, and ongoing work to support tenants with digital courses. It was also noted that there was a historic practice of taking £1.2M out of HRA for such projects and other local authorities were looking at moving much larger proportions of funds.

74.8         RESOLVED: That Council note the report from the Housing Committee.