Agenda item

HOUSING REVENUE ACCOUNT BUDGET 2020/21 TO 2022/23 AND HOUSING RENT SETTING FOR 2020/21

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 2020/21 to 2022/23. It was noted that the report had been considered, and endorsed, by the Community Scrutiny Committee at its meeting held on the 5th February 2020 as part of the budget consultation process.

 

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 for Resources advised that capital investment in the region of £230m had delivered the Carmarthenshire Home Standard for tenants and a further £49m hade been spent in maintaining the CHS+ home standard for properties and tenants.  Over the next 3 years it was expected that a further £49m would be spent on maintaining and upgrading the housing stock.

 

The Executive Board was reminded that since 2015 the Authority had been required to adopt the Welsh Government Policy for Social Housing Rent Harmonisation, meaning that the proposed rent increase was prescribed by Welsh Government guidance and provided an equitable distribution of the rents for the social sector tenants.  The policy ended in 2018/19 and an interim policy for 2019/20 was put in place by Welsh Government and have now developed a new policy for implementation in 2020/21.  This policy allowed Local Authorities within their target rent band to increase rent by CPI +1% only. It also allowed for the level of rent for individual tenants to raise by up to an additional £2 over and above CPI +1% for rent harmonisation, on condition that total rental income collected by the social landlord increased by no more than CPI +1%.

 

The new policy would apply for 5 years from 2020/21 and contained additional criteria around tenant satisfaction, space standards, minimisation of evictions and energy efficiencies.  It also identified the need to decarbonise social housing stock, which would be a major investment for Authorities.

 

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL TO:-

 

8.1

Increase the average housing rent as per the Welsh Government’s Social Housing Rents Policy :-

a)    Properties at target rents to increase by 2.53%

b)   Those rents below target rent are increased by 2.53% and are progressed by a maximum of £1 per week

c)    Those rents above target be frozen until such time as they meet the target rent

d)   Thereby producing an increase on average housing rent of 2.7% or £2.36.

8.2

To implement maximum progression of £1.00, for rents below target, until target rents are achieved.

8.3

To maintain garage rents 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 increases.

8.6

Approve the Housing Revenue Account Budget for 2020/21 (with 2021/22 and 2022/23 being soft budgets) as set out in Appendix B.

8.7

Approve the proposed Capital Programme, and applicable funding, for 2020/21 and the indicative spends for the future years 2021/22 to 2022/23 as set out in Appendix A.

 

Supporting documents: