Agenda item

(NOTE: Councillor H.A.L. Evans had earlier declared an interest in this item).

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 2019/20 to 2021/22. It was noted that the report had been considered, and endorsed, by the Community Scrutiny Committee at its meeting held on the 23^rd 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 continued investment for the Council’s Affordable Housing Commitment.

The Executive Board Member – Resources advised that capital investment of £231m within the current business plan had delivered the Carmarthenshire Home Standard and a further budget had been developed to ensure appropriate funding was allocated to maintain the CHS+ standards for all properties into the future. It was anticipated that over the next three years an estimated £45m would be expended in maintaining and upgrading the stock. The budget also provided £44m of funding over the next three years to support the Council’s Affordable Homes Programme facilitating an increase in the supply of affordable housing throughout the County through various solutions including the new build programme and the buyback scheme. The Council would also be undertaking the new build programme via its own capital programme and via the new Housing Company – Cartrefi Croeso.

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, which effectively meant that any proposed rent increase was prescribed by Welsh Government guidance and provided a more equitable distribution of rents for the social sector tenants.

That policy ended in 2018/19 and an interim policy for one year introduced for 2019/20, with the anticipation the Welsh Government would introduce a new policy for implementation in 2020/21. That interim policy allowed local authorities within their target rent band to increase rent by CPI only. As Carmarthenshire was currently marginally within the target rent band, the current report had recommended a 2.4% increase across all properties.

However, on the 30^th January, 2019  the Welsh Government had notified local authorities of an amendment to the interim policy that allowed local authorities with average rent within the Target Rent Band the flexibility to use the ‘up to £2 per week’ progression, subject to ensuring the overall rent increase for their general needs and sheltered housing stock did not exceed 2.4% and no individual tenant would receive a rent increase of more than the agreed policy uplift of 2.4% plus the £2.00 progression.

The Executive Board Member Resources advised that the change in the Welsh Government’s position had provided the authority with an opportunity to meet its previous commitment to tenants by implementing the harmonisation policy and establishing a fairer rent level for all of its tenants. As a result, it was being proposed that recommendation 1, within the report presented to the Executive Board that day be amended to read:-

“1. To increase the average housing rent as per the Welsh Government Interim Social Housing Rents Policy (amended 30 January).

a.     Properties at target rents will increase by 1.92%

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

c.     Those rents below target rent are increased by 1.92% and are progressed by a maximum of £1 per week.

This will produce an increase on the average housing rent of 2.4% or £2.05 and will provide the Housing Account with the same overall collection value.”

The Executive Board Member – Resources advised that should the Executive Board endorse the amended recommendation, it would be reported to the Community Scrutiny Committee for consultation, with any response thereto being reported direct to Council on the 20^th February.

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL TO:-