Agenda and minutes

To receive apologies for absence.

Apologies were received from Councillor Paul Rivers (The Leader will Chair the meeting in Cllr Rivers’ absence), Councillor Jacquie Keen, Councillor Janet Crowe, Councillor John Robini, Chris Austin and Sally Purcell.

To agree the notes of the previous meeting held on 30 November 2023 and published on the Council’s website.

The Board agreed that the notes of the meeting on 29 November 2023 were a complete and accurate record.

The Board is asked to consider the HRA Budget 2024/25 and make any recommendations to the Executive.

The Senior Accountant addressed the Board and delivered a presentation of the proposed HRA Budget 2024/25 and highlighted some key points, including:

·       The impact of changes in demand, legislation, and regulation, particularly the Social Housing Regulation Act (2023) and from April 2024 the RSH will be regulating all Social Landlords to ensure adherence to Consumer Standards

·       CPI inflation at 4%, forecasting 4.5% for 2024/25 to cover inflation uncertainties, therefore calculating an estimated inflation impact on budgets of £1million for 2024/25.

·       Major repairs budget is at £9.6million for year 2024/25 with focus on heating upgrades and critical fire safety works.

·       Proposed rent increase of 7.7% for 2024/25, based on the official CPI figure in September + 1%, generating an additional income of £2.1million

·       The impact of a 53-week rent year in 2024/25 on tenants in receipt of Universal Credit. The HRA Budget 2024/25 proposes to increase the Hardship Fund to £200,000 to support tenants

·       Analysis of various rent increase scenarios (6%, 7%, and proposed 7.7%) and their impact on additional income and borrowing needs. There would be a borrowing Requirement of £23 million with a 7.7% rent increase while a 6% increase would see an additional borrowing requirement of £28million, and the substantial inflation implications on higher borrowing were noted. The 7.7% rent increase equate to an average increase of £11.40 per week.

·       Following a service charge review as agreed in the 2023/4 budget process, an under-recovery of £388,000 was identified in service and utility charges for senior living facilities. Therefore, Utility charges are to increase by 20%, raising the weekly cost from £26 to £31.20.  Service charges to rise by 15%, from £20.90 to £24.40 per week. The service charge increase will relate to the year charged, no backdated payments are planned.

·        The minimum working balance requirement for the HRA is £2 million for emergency situations and the projected balances for 2024/25 are close to this minimum, for the first time since self-financing in 2012 which highlights limited funds and reserves.

The Tenants Panel Response

The Leader of the Tenants Panel, Terry Daubney, expressed his perspective as a tenant and on behalf of the Tenants Panel. He acknowledged the reasons for the proposed changes and the factors beyond Housing Services' control. He highlighted various reasons for the 7.7% rent increase related to government restrictions, failure to pay off loans, catch-up efforts, and the impact of new legislation addressing urgent needs such as the under-performance in compliance, failure of planned maintenance, stock management, dysfunctional IT systems and damp & mould issues; all of which are not the fault of the tenant. 

He mentioned that new legislation was the result of social landlords who were not performing adequately or achieving the Decent Homes Standard. Again, these cannot be attributed to the tenant and the Tenant’s Panel take the view that tenants are having to subsidise shortfalls in the system and inadequate performance of the Landlord.

Additionally, tenant satisfaction trends were referred to, indicating a decline in overall satisfaction from 83% in  ...  view the full minutes text for item 57.

Housing Services Improvement Manager to provide verbal update on reports due to be considered at Council on 27 February 2024 RE: Leaseholder Insurance and Social Housing Decarbonisation Fund Wave 2.2.

Annie Righton, Strategic Director, to update the Board on staffing arrangements.

It was noted that Andrew Smith, the Executive Head of Housing, had left the Council at the end of December 2023. Interim arrangements are being considered for covering his role across the two Authorities. An advert for the full-time post will be released on 25 January 2024.

Board to discuss the Work Programme and discuss suggestions for items going forward.

Next meeting is scheduled for Thursday 22 February 2023.

The Board agreed that the date of the next meeting would be Thursday 29 February 2024.