Agenda item

This report sets out the draft Housing Revenue Account Budget for 2022/23.

Recommendation

It is recommended that the Executive, after considering the comments from

the Landlord Services Advisory Board and Policy Overview and Scrutiny

Committee, make the following recommendations to Council, that:

1.    the rent level for Council dwellings be increased by a maximum of 4.10% from the 2021/22 level with effect from 1 April 2022 within the permitted guidelines contained within the Government’s rent setting policy;

2.    the average weekly charge for garages rented by both Council and non-Council tenants be increased by 50 pence per week excluding VAT from 1 April 2022;

3.    the service charges in senior living accommodation be increased by 30 pence per week from 1 April 2022 to £20.10;

4.    the recharge for energy costs in senior living accommodation be increased by 50 pence per week from 1 April 2022;

5.    the revised HRA Business Plan for 2022/23 to 2025/26 as set out in Annexe 1 be approved;

6.    the fees and charges as set out in Annexe 2 be approved:

7.    the Housing Revenue Account Capital Programmes as shown in Annexe 3 and 4 be approved;

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

9.    a strategic review will be undertaken on the 30-year HRA Business Plan in line with the content of this report during 2022/23.

RESOLVED

That the Executive, after considering the comments from the Landlord

Services Advisory Board and Policy Overview and Scrutiny Committee,

recommend to Council that:

1.    the rent level for Council dwellings be increased by a maximum of 4.10% from the 2021/22 level with effect from 1 April 2022 within the permitted guidelines contained within the Government’s rent setting policy;

2.    the average weekly charge for garages rented by both Council and non-Council tenants be increased by 50 pence per week excluding VAT from 1 April 2022;

3.    the service charges in senior living accommodation be increased by 30 pence per week from 1 April 2022 to £20.10;

4.    the recharge for energy costs in senior living accommodation be increased by 50 pence per week from 1 April 2022;

5.    the revised HRA Business Plan for 2022/23 to 2025/26 as set out in Annexe 1 be approved;

6.    the fees and charges as set out in Annexe 2 be approved:

7.    the Housing Revenue Account Capital Programmes as shown in Annexe 3 and 4 be approved;

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

9.    a strategic review will be undertaken on the 30-year HRA Business Plan in line with the content of this report during 2022/23.

Reason: To provide the resources to fund Waverley Borough Council’s Landlord Services operations, maintenance programme and building new affordable homes. 

[This matter is recommended to Council for decision and is not subject to the call-in procedure.]

Councillor Merryweather presented the report which set out the proposed budget and capital programme for the Housing Revenue Account, which was the ringfenced reserve for building and maintaining council housing and was entirely self-funding through rents.  He highlighted an amendment to the wording of Annexe 2, which had been recommended by the Landlord Services Advisory Board, to change “Community Rooms – Residents” to “Community Rooms – Non-commercial”; and change “Community Rooms – Non-residential” to “Community Rooms – Commercial”.  He outlined the key areas for consideration, including the financial pressures resulting from the pandemic and the measures proposed to mitigate the impact.  He thanked the members of the Landlord Services Advisory Board and the Services Overview and Scrutiny Committee for their constructive input. 

Councillor Palmer welcomed the report and working with Councillor Rivers to continue the work of Councillor Rosoman.  He addressed the uncertainties arising from the pandemic and inflation; and the difficulties from the Government’s definition of affordable housing which meant that as market values were so high in Waverley, affordable housing was still unaffordable for many.  The availability of affordable housing was a key priority although noted the constraints on the Council.  He welcomed the input of all Councillors on the priorities.  A hardship fund had been established and it was proposed to use that fund to address those in need. 

Councillor Rivers thanked the officers for their presentation to the Landlord Services Advisory Board and the Waverley tenants for their suggestion.  The Leader echoed those thanks.

Councillor Hyman spoke on the report, expressing concern over the impact of the proposals on vulnerable residents and that the rent increase was over the rate of inflation. In response, the Leader advised that housing need outstripped the supply.  This demonstrated the case for building more houses and in order to do so, money needed to be generated through rents.  It was recognised that this may temporarily push some residents into hardship and therefore a hardship fund was proposed.  The Council was required to use a formula to calculate part of the rent, and therefore that element was outside the Council’s control.  He also addressed the question of climate change and stressed that sustainable housing would bring energy bills down for residents. 

Councillor Merryweather responded to the comments made, clarifying the CPI measure of inflation used to calculate rents and that the rent level proposed was not higher than the rate of inflation based on current projections.  He noted that the energy market was failing and the impact that was having.      

Councillor Mulliner spoke on pilot scheme of installing new green technology in homes and stressed the need to learn how much that installation of green technology would cost tenants and the logistics of the installation.  The Leader agreed with the comments and officers were currently looking into the issues.

Councillor Seaborne sought clarification on the £16m underspend and what mitigations were in place for the coming year to ensure delivery.  The Leader responded and advised that the mitigating circumstances around Covid were a factor in the delivery of the projects.  Councillor Merryweather agreed to look into Councillor Seaborne’s question.  The Council was constrained int hat only 60% of new homes could be funded from capital receipts.  Proposals were considered by the Landlord Services Advisory Board and the feedback has been taken into account.

RESOLVED

That the Executive, after considering the comments from the Landlord

Services Advisory Board and Policy Overview and Scrutiny Committee,

recommend to Council that:

1.    the rent level for Council dwellings be increased by a maximum of 4.10% from the 2021/22 level with effect from 1 April 2022 within the permitted guidelines contained within the Government’s rent setting policy;

2.    the average weekly charge for garages rented by both Council and non-Council tenants be increased by 50 pence per week excluding VAT from 1 April 2022;

3.    the service charges in senior living accommodation be increased by 30 pence per week from 1 April 2022 to £20.10;

4.    the recharge for energy costs in senior living accommodation be increased by 50 pence per week from 1 April 2022;

5.    the revised HRA Business Plan for 2022/23 to 2025/26 as set out in Annexe 1 be approved;

6.    the fees and charges as set out in Annexe 2 be approved:

7.    the Housing Revenue Account Capital Programmes as shown in Annexe 3 and 4 be approved;

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

9.    a strategic review will be undertaken on the 30-year HRA Business Plan in line with the content of this report during 2022/23.

Reason: To provide the resources to fund Waverley Borough Council’s Landlord Services operations, maintenance programme and building new affordable homes.