Agenda item

HOUSING REVENUE ACCOUNT BUDGET 2018/19 TO 2020/21 AND HOUSING RENT SETTING FOR 2018/19

Minutes:

The Executive Board considered a report prepared by the Director of Corporate Services, in conjunction with officers from the Communities Department that brought together the latest proposals for the Revenue and Capital Budgets for the Housing Revenue Account 2018/19 to 2020/21. It was noted that the report had been considered, and endorsed, by the Community Scrutiny Committee at its meeting held on the 30th January 2018 as part of the budget consultation process.

 

The Executive Board Member – Resources advised that the report had been prepared reflecting the latest proposals contained in the Housing Revenue Account (HRA) Business Plan, being the primary financial planning tool for delivering the Carmarthenshire Homes Standard Plus (CHS+) for the future. It was noted that the proposed investment within the current business plan had delivered the CHS by 2015 (to those homes where tenants had agreed to have the work undertaken) provided investment to maintain the CHS+ and commenced investment for the Council’s Affordable Housing Commitment.

 

The Executive Board Member – Resources advised that by the end of 2017/18 over £250m of capital had been invested to deliver the Carmarthenshire Homes Standard to date, and the current business plan proposed to invest £30m in maintaining and upgrading the stock over the next three years coupled with £26m to support the Affordable Housing Programme

 

The Executive Board Member- Resources reminded the Board that with regard to the setting of the Housing Rents, the Authority had previously adopted the Welsh Government Social Housing Rent Harmonisation Policy with the aim of progressing to the mid-point target rent. However, whilst that policy had not changed, the Welsh Government had indicated that due to a relatively high CPI of 3%, local authorities may wish to consider using a lower option for 2018/19. Having regard to the Welsh Government’s indication, it was being proposed that the Authority set its rent at the lowest allowable level representing a 3.5% increase plus £1.62 progression producing an average rent of £85.27 resulting in anincrease of 4.34% or £3.55.

 

The Executive Board having considered the recommendations of the Carmarthenshire Homes Standard Steering group

 

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL TO:-

 

8.1

 increase the average housing rent as per the Welsh Government’s Social Housing Rents Policy (low end target) i.e.:-

·       Properties at target rents to increase by 3.5%(CPI + 0.5%)

·       Properties where rent was below target rent to increase by 3.5% (CPI + 0.5%) plus a maximum progression of £1.62

·       Properties above target rent be frozen until such time as they met the target

thereby producing an average housing rent increase of  4.34% or £3.55, producing a sustainable Business Plan, which maintains CHS+ and resources the Affordable Homes Programme;

8.2

To implement the maximum progression of £1.62 for rents below target, until target rents were achieved;

8.3

That garage rents be not increased for 2018/19 and be held at the same level as 2017/18 with the rents being set for garages at £9.00 per week and garage bases at £2.25 per week;

8.4

Apply the service charge policy to ensure tenants who received the benefit from specific services paid for those services;

8.5

Increase charges for using the Council’s sewerage treatment works in line with the rent increase;

8.6

Approve the proposed Capital Programme, and applicable funding, for 2018/19 and the indicative spends for future years 2018/19 to 2020/21, as set out in Appendix A to the report,

8.7

Approve the Housing Revenue Account Budget for 2018/19 (with 2019/20 and 2020/21 being soft budgets), as set out in Appendix B to the report

 

Supporting documents: