Housing Revenue Account Estimates and Housing Capital Programme 2022-23
- Meeting of Overview Scrutiny Committee, Thursday, 10 February 2022 7.30 pm (Item 27.)
- View the background to item 27.
The Assistant Director (Corporate Services) presented the Overview Scrutiny Committee 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 Assistant Director (Corporate Services) highlighted the following:
· The Original Estimate for 2022-23 represents a balanced budget position, achieved through drawing £324,020 from the HRA General Reserve as expenditure in the year is anticipated to exceed the income generated in the year
· The 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).
· The Housing capital programme for 2022-23 totals £24,058,970. The HRA capital
programme for 2022-23 will primarily focus on works to maintain the council’s housing stock and delivering the New Build and Acquisitions Programme.
The Director (Corporate Services) and the Assistant Director (Corporate Services) fielded questions from the Committee and highlighted the following:
· Rent setting is directed by guidance from the regulator (CPI+1%) that was put to Cabinet on the basis of accountability. The Council wanted to make the HRA sustainable for the wider tenant body.
· The increase in rent from the the proposed CPI+1% increase as well as projections on properties has generated £1.6million which will be used to fund HRA services.
· The deep cleaning of alleyways mentioned in the report refers to Council owned alleyways.
· Service Charges will increase by CPI+1%
· Some Housing costs can be recovered through Housing Benefit; further information on this matter will be provided to the Committee outside of the meeting.
· The Director (Corporate Services) agreed to provide the Committee with further detail on the current position with the Council’s housing stock in comparison to previous years.
Resolved that the Committee noted the Housing Revenue Account Estimates and Housing Capital Programme 2022-23
- 1. HRA Estimates Report 2022-23 - Summary version, item 27. PDF 97 KB
- 2. Appendix 2 - Housing Revenue Account Budget, item 27. PDF 83 KB
- 2a. Appendix 2a Draft Budget Book 22-23 HRA, item 27. PDF 191 KB
- 3. Appendix 3 - Capital Programme, item 27. PDF 96 KB
- 4. Appendix 4 - Working Balances, item 27. PDF 134 KB
- 4a. Appendix 4a HRA Reserves Policy Jan 2022, item 27. PDF 339 KB
- 4b. Appendix 4b Assessment of HRA Working Balance Level 2022-23, item 27. PDF 217 KB
- 5. Appendix 5 HRA Business Plan (Revenue), item 27. PDF 234 KB
- 6. Appendix 6 HRA Business Plan (Capital), item 27. PDF 438 KB