Decisions for issue Housing Revenue Account Budget and Investment Programme 2017/18 and Medium Term Financial Strategy.

RESOLVED TO RECOMMEND – That Council approves the updated HRA revenue budget for 2017/18 as shown in Appendix 1;

RESOLVED – That the Committee:

1)        Approves a rent reduction of 1% in line with government legislation as detailed in paragraph 3.7;

2)        Approves service charges and fees as detailed in Appendix 2.

3)        approves the capital programme expenditure and financing budget of £39.854 million for 2017/18 and notes the 3 year programme as set out in Appendix 3;

4)        Notes the Medium Term Financial Strategy and 30 year financial projections shown in Appendix 4.

5)        Note that Appendix 1 ‘HRA Forecast Outturn 2017/18 & Revenue Budget 2017/18’ has been updated since being reported to Housing and New Homes Committee to include an up to date month 9 forecast for 2016/17 (updated from month 7). Also, a further service pressure of £0.045m has been added as explained in paragraph 3.4.

(1)                   That Housing & New Homes Committee recommend that Policy, Resources & Growth Committee:

(a)     approves and recommends to Council the updated HRA revenue budget for 2017/18 as shown in Appendix 1;

(b)       approves a rent reduction of 1% in line with government legislation as detailed in paragraph 3.7;

(c)       approves service charges and fees as detailed in Appendix 2.

(d)       approves the capital programme expenditure and financing budget of £39.854 million for 2017/18 and notes the 4 year programme as set out in Appendix 3;

(e)       notes the Medium Term Financial Strategy and 30 year financial projections shown in Appendix 4.

(2)              That the Housing & New Homes Committee:

(a)       Notes that the proposed payments to Government to fund the Housing Association Right to Buy scheme could severely constrain the HRA;

(b)       Requests that Policy, Resources and Growth Committee review the capital programme, once the extent of the levy is known;

(c)       Produces a report setting out options for mitigating the high value levy without resort to the sale, and therefore loss, of social housing. This report should explore housing management efficiencies, reductions in the capital expenditure and review the apportionment of expenditure between the HRA and the General Fund to ensure adherence to the Local Government and Housing Act 1989 (schedule 4, para 3-1, p194);   

(d)       Set up a task and finish working group and use the existing consultation process with tenants representatives, (including Area Panels), members of all parties and officers, in order to review transfers between HRA and General Fund, in line with 1989 Local Government Housing Act requirements as in c);