Agenda item

The Council is recommended to make the resolutions set out in the report at agenda item 7.

Portfolio Holder for Finance, Assets and Property together with Co-Portfolio Holders for Housing.

The Leader of the Council moved the recommendations, and in so doing emphasised that the hardship fund would be increased to help support tenants on Universal Credit with mitigating the impact of proposed rent increase. Cllr Fairclough seconded the motion and Cllr Merryweather, Portfolio Holder for Finance, Assets and Property introduced the HRA Budget 2024/25 by summarising:

·       That the HRA operated in highly a regulated environment which governed how resources could be used

·       Inflationary cost pressures were apparent together with growth pressures including the need to invest in maintaining an adequate housing management IT system specific to the HRA

·       CPI in September 2023 was 6.7% plus the additional 1% which resulted in a maximum allowable rent increase of 7.7% for 2024/25as proposed

·       Alternative scenarios of 1%, 4% and 6% increases had been tested

·       The Hardship Fund would be increased to £200,000 from £30,000, and

·       A stepped approach to increasing energy service charges was proposed which would be reviewed annually when further stepped increases would be taken to take the recharges to the level of full recovery.

Councillor Paul Rivers, Co-Portfolio Holder for Housing, spoke to thank the Tenants Panel and Landlord Services Advisory Board for their engagement with the budget setting process. Cllr Rivers said that the Tenants Panel was right to have highlighted the decline in tenant satisfaction from 83% in 2017 to 68% in 2023; and concurred that tenants were not responsible for macro-economic conditions. Cllr Rivers emphasised that the Council was committed to providing an improved housing service and remarked that the recommendation for a 7.7% increase had been proposed with a heavy-heart. Contextually, the 4% rise in the previous year had been to shield residents during an inflationary peak. Councillor Palmer, Co-Portfolio Holder for Housing, urged that communications to tenants be improved to encourage awareness and take-up of available support, including discretionary relief.

Members’ statements in favour of the recommendations included:

·       The Council was committed to building quality Passivhaus standard energy efficient housing

·       Rental income was used to fund housing repairs and maintenance

·       A 7.7% increase would protect tenants in the longer term, whereas a smaller increase would have to be recovered in future years, and

·       An Executive Working Group would consider tenant satisfaction measures.

Members’ spoke against the recommendations as follows:

·       That the reasoning for the previous years’ 4.4% increase did not appear sound

·       The budget strategy indicated that there would be above inflation rent rises for the foreseeable future

·       In addition to the rent and energy increases, new services charges for cleaning communal areas were being proposed

The Leader of the Council countered that the proposed increases would be handled sensitively and fairly. The Council was committed to raising tenant satisfaction, delivering more and better contract management for responsive repairs, and the provision of good quality energy efficient housing as set out in the Corporate Strategy. 

In accordance with Procedure Rule 17.1, the Mayor called a vote on the recommendations which were taken en bloc. The vote was carried, with 36 votes in favour, 9 abstentions and 1 vote against.

RESOLVED to approve:

1.     The weekly rent for Council dwellings to be increased by up to 7.7% from the 2023/24 weekly rent charges, effective from 1 April 2024, within the permitted guidelines contained within the Government’s rent setting policy

2.     That service charges and utility charges at non senior living accommodation be increased by 7.7% per week

3.     That the heating charges in senior living accommodation be increased by 20% per week from 1 April 2024 to £31.20

4.     The Service Charge in senior living accommodation be increased by 15% per week from 1 April 2024 to £24.04

5.     The revised HRA Business Plan for 2024/25 to 2053/54 as set out in Annexe 1

6.     The approved change to the fees and charges as set out in Annexe 4 is noted;

7.     The HRA capital programmes as show in Annexe 5 and 6;

8.     The financing of the capital programmes in line with the resources as shown in Annexe 7

9.     To deliver the works identified in the maintenance budgets it is recommended that authority is delegated to the Executive Head of Housing, in consultation with the s151 Officer, to procure and enter contracts valued over £100,000 show in Annexe 8, and

10.An increase in inflation provision proposed within the Housing Revenue Account budget of £48,207 to be funded by the £159,459 increase in funding guarantee grant as confirmed by the Department of Levelling Up, Housing and Communities on 5 February 2024.