Issue - meetings

This report advises Councillors of the latest position regarding the Housing Revenue Account (HRA) for 2019/20 and the updated Business Plan and seeks approval of the 2019/20 budget.

Recommendation

That the Executive, having considered the comments from the Value for Money Overview and Scrutiny Committee, recommends to Council that:

1.         the annual rent level of Council dwellings be reduced by 1% from the 2018/19 level with effect from April 2019 in compliance with the Welfare Reform and Work Act;

2.         the revised HRA Business Plan for 2019/20 to 2022/23 as set out at Annexe 1 be approved;

3.         the fees and charges be agreed as set out in Annexe 2;

4.         the 2019/20 Housing Revenue Account Capital Programmes as shown at Annexe 3 and 4 be approved; and

5.         the financing of the capital programmes be approved in line with the resources shown in Annexe 5.

70.1     Cllr Hall advised the Executive that the report presented a robust position for the Housing Revenue Account. The Council had undertaken a major review of the HRA finances in light of government changes to HRA financing in 2016 which included a forced 1% rent reduction for four years. These changes had lost the HRA significant resources over the 30-year life of the business plan, but the updated Business Plan was realistic and robust: it provided resources to fund the 30-year stock maintenance forecast, and deliver proposals for building new affordable homes and investment in stock re-modelling.

70.2     Cllr Beaman and Cllr Band drew attention to the observations from the Value for Money and Customer Services Overview and Scrutiny Committee, which offered broad support for the HRA Business Plan, Revenue Budget and Capital Programme. They asked that in future it would be helpful to see a more detailed breakdown of the how the growth in the business plan was split between rent increases and the net increase in the number of council homes, in order to see the benefits of investment in housing stock.

70.3     Cllr King, Portfolio Holder for Housing, thanked the Overview and Scrutiny Committee for their observations and helpful suggestion that would provide more transparency to the business plan going forward.

70.4     Cllr King thanked the Head of Finance and Head of Housing Operations for their work to produce a business plan that was robust and sustainable despite the 1% rent reductions that the council had been forced to implement. She looked forward to the government confirming that councils would be able to introduce rent increases from 2020, and this news would prompt a further review of the business plan in order to plan how the increased funding to enable further investment in building new council homes. 

70.5     In conclusion, the Leader reminded the Executive that Waverley is a significant social landlord in the borough, and the Housing  Revenue Account was an important part of the business of the Council.

70.6     The Executive, having considered the comments of the Value for Money and Customer Services Overview & Scrutiny Committee, RESOLVED to RECOMMEND to Council that:

1.         the annual rent level of Council dwellings is reduced by 1% from the 2018/19 level with effect from April 2019, in compliance with the Welfare Reform and Work Act;

2.         the revised HRA Business Plan for 2019/20 to 2022/23 as set out at Annexe 1 is approved;

3.         the fees and charges be agreed as set out in Annexe 2;

4.                     the 2019/20 Housing Revenue Account Capital Programmes as shown at Annexes 3 and 4 be approved; and

5.         the financing of the capital programmes be approved in line with the resources shown in Annexe 5.

[Reason: to enable the Council to set the budget for the Housing Revenue Account for 2019/20.]