The Cabinet was presented with the draft revenue and capital estimates for Housing Revenue Account Services in 2022-23 together with the determination of the level of rents and service charges for 2022-23.

The report was presented in four sections and the Assistant Director (Corporate Services) provided Members with a summary of each section: -

·         Section One – HRA Revenue Account Budget;

·         Section Two – Housing Capital Programme;

·         Section Three – Robustness of Estimates and Adequacy of Reserves; and

·         Section Four – HRA Business Planning.

The Council, this year, had prepared a five-year Medium Term Financial Strategy spanning 2022-23 to 2026-27 in response to an absence of further information on the future of funding for local government from Central Government and the need for the Council to consider initiatives to reduce the emerging budget gap that the Council will now face on its General Fund Services, as well as ensuring HRA services remained sustainable.

The Assistant Director (Corporate Services) advised that current government policy permits annual rent increases for both social and affordable rent properties up to CPI+1% from April 2020 for a period of at least 5 years. The Rent Standard issued by the Regulator of Social Housing in respect of 2022-23 confirmed that rents could increase by CPI+1% from 1 April 2022 (where CPI is measured at September 2021). Dwelling Rents for 2022-23 will increase by 4.1%. The authority’s average weekly social rent will increase to £94.22 in 2022-23, compared to £90.26 in 2021-22. The average affordable rent will increase to £170.43 (the average rent increase will not be exactly equal to 4.1% due to re-letting of void properties and additions of properties during the year).

Service charges were also levied on Council dwellings to cover a range of services including caretaking services and maintenance of communal areas and communal assets, such as lifts and gardens. Service charges were generally eligible to be met by Housing Benefit, with the exception of charges to individual homes such as heating or lighting within a dwelling. The average weekly service charge for 2022-23 will be £3.88 (currently £3.72). The capped service charge had been increased by 4.1% (based on CPI at September 2021 +1).

Rent levels and service charges had been determined by the Director (Housing) in consultation with the Director (Corporate Services), in accordance with the Housing Act 1985 and under delegated authority as set out at Annex 1.13B.83 of the Constitution.

Members acknowledged that the increase in rental income will continue to contribute towards the maintenance of Council dwellings as well as the introduction of schemes such as the requirement for all social housing stock to reach an Energy Performance Certificate (EPC) of C or above.

Resolved that the Cabinet recommends to Full Council that: -

1.    the draft Revenue estimates for 2022-23 together with the revised estimates for 2021-22 to be approved;

2.    the draft capital estimates, together with the revised estimates for 2021-22 be approved, subject to detailed reports coming forward for new schemes, where applicable;

3.    the increase in average rents of 4.1% for 2022-23 be noted; and

4.    due consideration be given to the view of the Director (Corporate Services) (as S151 Officer) on the robustness of estimates for the coming year, the medium term financial strategy and the adequacy of proposed reserves and balances, as required under Section 25 of the Local Government Finance Act 2003.