Executive Board

4th FEBRUARY 2019

 

                               

Housing Revenue Account Budget 2019/20 to 2021/22 and Housing Rent Setting for 2019/20

RECOMMENDATIONS / KEY DECISIONS REQUIRED:

That Executive Board consider the following Carmarthenshire Homes Standard Steering Group recommendations and recommend to County Council:

1.    To increase the average housing rent as per the WG Interim Social Housing Rents Policy.

a.    Properties at target rents will increase by 2.4%

b.    Those rents above target are frozen until such time that they meet the target.

c.    This will produce an increase on the average housing rent of 2.4% or £2.05

This will produce a sustainable Business Plan, maintain CHS+, resource our Affordable Homes programme and is supported by the CHS+ Steering Group.

2.     To maintain garage rents at £9.00 per week and garage bases at £2.25 per week.

3.    To apply the service charge policy to ensure tenants who receive the benefit from specific services pay for those services.

4.    To increase charges for using our sewerage treatment works in line with rent increases.

5.    To approve the Housing Revenue Account Budget for 2019/20 (with 2020/21 and 2021/22 being soft budgets) as set out in Appendix B.

6.    To approve the proposed Capital Programme and applicable funding for 2019/20 and the indicative spends for the future years 2020/21 to 2021/22 as set out in Appendix A.

 

REASONS:

To enable the Authority to set its Housing Revenue Account Budget and the Housing Rent levels for 2019/20.

 

Relevant scrutiny committee to be consulted   Yes

Exec Board Decision Required                     Yes

Council Decision Required                            Yes     

EXECUTIVE BOARD MEMBER PORTFOLIO HOLDER:- Cllr David Jenkins (Resources)

                                                                                              Cllr Linda Evans (Housing)

 

Directorate: Corporate Services

Name of Director: Chris Moore

 

 

Report Author: Andrea Thomas

 

Designations:

Director of Corporate Services

 

 

Group Accountant

 

Tel No’s / E Mail Addresses:

01267 224160

CMoore@carmarthenshire.gov.uk

01267 228742

AndThomas@carmarthenshire.gov.uk


EXECUTIVE SUMMARY

EXECUTIVE BOARD

4th FEBRUARY 2019

 

 

Housing Revenue Account Budget and Housing Rent Setting for 2019/20

 

 

                                                          

 

This report has been prepared in conjunction with officers from the Communities Department and brings together the latest proposals for the Revenue and Capital Budgets for the Housing Revenue Account 2019/20 to 2021/22. The report has been presented to the Community Scrutiny Committee on the 23rd January 2019 as part of the budget consultation process

and the Executive Board will consider any views expressed by that Committee when setting the Budget and Housing Rents for 2019/20.

 

The report has been prepared reflecting the latest proposals contained in the Housing Revenue Account (HRA) Business Plan, which is the primary financial planning tool for delivering the Carmarthenshire Homes Standard Plus (CHS+) for the future. The proposed investment within the current business plan delivered the CHS by 2015 (to those homes where tenants agreed to have work undertaken), provides investment to maintain CHS+ and continues investment for our Affordable Housing Commitment.

 

The report also details how rents will increase for 2019/20:

·         Appendix A provides the proposed Capital Programme for 2019/22.

·         Appendix B of this report provides the proposed Revenue Account Budget for 2019/22.

The HRA budget for 2019/20 is being set to reflect:

·         Interim Social Housing Rent Policy set by Welsh Government (WG)

·         Proposals contained in the Carmarthenshire Homes Standard Plus (CHS+)

·         Affordable Homes Delivery Plan

·         Removal of the HRA Borrowing Cap (recently agreed by WG)

 

DETAILED REPORT ATTACHED ?

YES

 

 


IMPLICATIONS

 

 

I confirm that other than those implications which have been agreed with the appropriate Directors / Heads of Service and are referred to in detail below, there are no other implications associated with this report :

 

Signed: Chris Moore                                                                  Director of Corporate Services                         

 

Policy, Crime & Disorder and Equalities

 

Legal

Finance

ICT

Risk Management Issues

Staffing Implications

Physical Assets 

NONE

 

NONE

 

YES

 

NONE

 

NONE

 

 

NONE

 

 

NONE

 

 

FINANCE

The report details the HRA proposals to be considered by Executive Board. If the proposals are agreed the budget for the HRA will be set for 2019/20 with an expenditure level of £38M.
The average rent will increase from £85.52 to £87.57 (2.4% or £2.05).

The proposed Capital Programme will be £30.9M for 2019/20, £30.8M for 2020/21 and £27.8M for 2021/22.

 

Physical Assets

The capital programme continues the works to bring the housing properties up to/maintain the Carmarthenshire Home Standard+ as per the 30 year business plan.

 

 


 

CONSULTATIONS

 

 

I confirm that the appropriate consultations have taken in place and the outcomes are as detailed below

 

Signed:  Chris Moore                                                                Director of Corporate Services                                              

 

1.Local Member(s)  - Not applicable

2.Community / Town Council – Not applicable

3.Relevant Partners  - Not applicable

4.Staff Side Representatives and other Organisations – Not applicable

 

 

Section 100D Local Government Act, 1972 – Access to Information

List of Background Papers used in the preparation of this report:

 

THESE ARE DETAILED BELOW    

 

Title of Document

 

File Ref No.

Locations that the papers are available for public inspection

 

 

 

Social Housing Rents Policy

 

Financial Services, County Hall, Carmarthen

30 year Housing Business Plan

 

Financial Services , County Hall, Carmarthen