Agenda item

The Director of Housing submits a report seeking the views of Members on proposals for setting the Housing Revenue Account budget for 2016/17, increasing service charges (excluding heating and cleaning) and garage rents by 0.9% and reductions in the 2016/17 spending from options set out in table 6 of the report.   

The Director of Housing submitted a report seeking the views of Members on proposals for setting the Housing Revenue Account budget for 2016/17, increasing service charges (excluding heating and cleaning) and garage rents by 0.9% and reductions in the 2016/17 spending from options set out in table 6 of the report.

It was noted that the budget would be set in the context of the government requirement that rents are reduced by 1% for each of the next four years (2016-2020).  The Executive were proposing that the first of the four Rent Reduction Budgets is set a as balance budget with no use of reserves.   The Executive were also proposing to consider the outcome of the work on an HRA Spending Review Phase 3 in the summer of 2016 to identify a total reduction in spending of c£11.7m pa by 2019/20, compared to the current business plan.  Consideration of Spending Review Phase 3 will enable the Executive to agree a 3 year framework for future annual budgets up to and including 2019/20.  Any proposed changes would be subject to consultation in the future.

Members made the following comments:-

a)         STAR was a valued service and with the implementation of Universal Credits, the service could be under further pressure.

b)         Some landscaped areas had suffered from overgrown trees and bushes and concerns were expressed at reducing landscaping provisions.

c)         The Task Group would be looking at the length of voids to ensure that homes were returned to use as soon as possible to minimise loss of rent income and reduce extra costs in paying Council Tax on void properties.

In response to Members’ comments it was stated that:-

a)         That the 3 current staff vacancies for STAR would continue until the report on the challenges facing the service was received.  The report would assess the impact on the service of the ongoing vacancies and a decision on them would be taken at that time.

b)         A number of landscaping improvements on many estates had already reduced the need for landscaping maintenance works.   The budget for landscaping works had been increased in recent years and had made significant progress, which gave confidence in being able to suggest a reduction in budget now.

c)         Tenants who felt their kitchens or bathrooms were in poor condition were able to submit requests for improvements and these would be considered alongside the planned kitchen replacement programme.

d)         There was no proposal to reduce the budget provision for works on concrete paths.

e)         The replacement of inefficient boilers was carried out under a different line in the capital programme and the proposed 10% reduction was felt to be achievable without any detrimental effect upon tenants.  This would be monitored.

AGREED:

1)         That the report be received and the Commission support the proposals for the HRA budget for 2016/17, the proposals for increases in service charges and that the proposals for budget reductions be noted subject to the comments made by Members.

2)         The Commission be updated on future progress of the budget as it progresses.