Agenda item

HOUSING REVENUE ACCOUNT BUDGET 2022/23 TO 2024/25 REVENUE AND CAPITAL AND HOUSING RENT SETTING FOR 2022/23

Minutes:

[NOTE: Councillor H.A.L. Evans having earlier declared an interest in this item left the meeting during its consideration]

 

The Cabinet considered a report that brought together the latest proposals for the Revenue and Capital Budgets for the Housing Revenue Account 2022/23 to 2024/25.  It was noted the report had been considered, and endorsed, by the Community Scrutiny Committee at its meeting held on the 31st January 2022 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 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 Housing Regeneration and Development Delivery Plan.

 

The Cabinet Member for Resources advised that capital investment in the region of £231m had delivered the Carmarthenshire Home Standard for tenants and more recently, up to the end of this financial year a further £83m had been spent on maintaining the CHS+ home standard for properties and tenants.  Over the next 3 years a further £64m was expected to be spent in maintaining and upgrading the housing stock.

 

The budget also provided funding of some £56m over the next 3 years to maintain the CHS+ and £56m to support the Affordable Homes Programme.

 

The Cabinet 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.  While that policy ended in 2018/19, and an interim policy applied for 2019/20 the Welsh Government had subsequently developed a new policy for implementation in 2020/21 to apply for a period of 5 years from 2020/21 and contained some additional/amended requirements, as detailed within the report.  The main elements of that policy allowed Local Authorities to uplift the total rent envelope by the Consumer Price Index (CPI) +1% for each of the five years to 2024/25. It also allowed for the level of rent for individual tenants to rise 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 Cabinet was advised that setting the rent within the current Government policy, recognised the need to set the rent at an affordable level for tenants, delivering on the aspirations and trying to ensure the previous commitment to tenants of implementing the harmonisation policy and establishing a fairer rent level for all tenants was a fine balance to achieve.

 

In responding to all the priorities and balancing the business plan, the rent increase at an overall increase of 2.9%, would produce an average rent of £94.26 for tenants.

 

Included within the overall rent increase envelope it was proposed that the Authority continues with the rent progression set at a maximum of £1 for properties below target rent.

 

This would produce an increase on the average housing rent of £2.66 per week, which is below the Welsh Government maximum increase level and would produce a rent level which would be one of the lowest rent levels set across the eleven housing stock retaining Welsh Authorities.

 

UNANIMOUSLY RESOLVED TO RECOMMEND TO COUNCIL:

 

7.1

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

a)    Properties at target rents to increase by 2.74%

b)   Properties where rent was below target rent, rent to increase by 2.74% plus a maximum progression of £1.00

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

d)   This will produce an increase on the average housing rent of 2.9% or £2.66 per week

Thereby producing a sustainable Business Plan, maintain CHS+, resource our Housing Regeneration and Development Delivery Plan and was supported by the Housing and Regeneration Strategic Team.

7.2

To implement a maximum progression of £1.00 for rents below target, until target rents were achieved;

7.3

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

7.4

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

7.5

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

7.6

To approve the Housing Revenue Account Budget for 2022/23 (with 2023/24and 2024/25 being soft budgets)as set out in Appendix A to the report;

7.7

To approve the proposed Capital Programme and applicable funding for 2022/23 and the indicative spends for 2023/24 to 2024/25, as set out in Appendix B to the report.

 

Supporting documents: