Decision details

The Council must set  a Budget for the Housing revenue Account (HRA) and HRA Major Works Programme.

Councillor Damian White presented the report to Cabinet detailing the HRA and HRA Major Works Capital Programme. It was noted that the proposed budget will allow the Borough to manage the Council’s Housing stock to a reasonable standard, maintain the existing stock and provide funding for a substantial new build and Estate Regeneration Programme. 

Rents and services charges have been set and are outlined in the report. In accordance with government policy, rents are to be reduced by 1% from the week commencing 3^rd April, 2017.

This will result in a year on year reduction in annual income to the HRA. To mitigate this, significant steps have been taken to reduce the costs and improve the efficiency of the Housing Service across the board. It is important that those receiving services are those receiving them.  Cabinet noted the table of service charges set out at paragraph 2.2.2 of the report.  The proposals for support services were also detailed together with plans for improvements to support schemes.

There are proposals to increase the level of charges for garages in 2017/18 by 7.5%.  It was noted that a significant investment programme will be needed to drive standards and promote better utilisation of this asset to increase revenue.

The HRA Budget was considered and detailed in Appendix 1 of the report. Cabinet noted the growth items referred to in the summary table. 

There has been a temporary resource of 10 FTE personnel in the Internal Fraud Team.  The impact of this work has been significant and has resulted in a £3.5 million saving for the Council. In addition, further funding has been approved for a temporary resource of 4 FTE’s to reduce rent arrears.  This will bring an additional saving of £0.360 million per annum.

Cabinet noted the addition of £1 million to secure a Tenants Incentive Scheme.  Further funding opportunities will be explored to promote this.  It will support residents who no longer require social housing and therefore free up housing for those in serious need.

£0.062 million has been allocated to assist in the removal of fly tipping on HRA land.

Cabinet noted the major works budget – HRA 2017/18 to 2019/20.  Again there has been an impact given the four year rent reduction meaning that it is more difficult to plan the major works expenditure than previously.

A salient investment programme for sheltered housing has been planned as part of the regeneration and review of older peoples housing.  There will be £4.7 million invested over the next two years.

Consideration was given to the 30 year Business Plan as regards the current budget setting.  Officers will be reviewing the possibility of a new scheme to replace the “Pay to Stay” regime which is now a discretionary policy. Residents with an income over £36,000 per year will be deemed to be able to make their own arrangements for housing and this initiative will in turn be linked to the development of low cost home ownership properties under the estate Regeneration Programme.

The Council aspires to provide excellent quality homes which will encourage exceptional people to the Borough and maintain a stock of social housing which is well maintained and fit for purpose.

Cabinet:

1.            Approved the Housing Revenue Account Budget as detailed in Appendix 1 of the report.

2.            Agreed that the average rents chargeable for tenants in general needs Council properties owned by the London Borough of Havering be decreased by 1% from the w/c 3 April 2017 in line with the indicative figures contained in paragraph 2.1.4 of the report.

3.            Agreed that the average rents chargeable for tenants in supported housing Council properties, such as sheltered housing and hostels, owned by the London Borough of Havering, be reduced by 1% from the w/c 3 April 2017 in line with the indicative figures contained in paragraph 2.1.4 and 2.1.5 of the report.

4.            Agreed the four rent-free weeks for 2017/18 as being: w/c 21 August 2017, the two weeks commencing 18 and 25 December 2017, and the week commencing 26 March 2018.

5.            Agreed that service charges and heating and hot water charges for 2017/18 are as detailed in paragraph 2.2.2 of the report.

6.            Agreed that the service charges for homeless households accommodated in the Council’s hostels 2017/18 are as detailed in paragraph 2.2.3 of the report.

7.            Agreed that charges for garages should be increased by 7.5% in 2017/18 as detailed in paragraph 2.3.1 of the report. 

8.            Agreed that the service charge for the provision of security and support in sheltered housing for 2017/18 shall be as detailed in paragraph 2.4.1 of the report. 

9.            Agreed that the Careline support charge should be increased by 2% for 2017/18 as detailed in paragraph 2.5.1 of the report.

10.         Agreed that the Telecare support charges should be increased by 2% for 2017/18 as detailed in paragraph 2.5.1 of the report.

11.         Agreed the funding of the Tenant Incentive Scheme as identified in paragraph 3.2.9 of the report.

12.       Agreed the funding to remove fly tipping on HRA land as detailed in paragraph 3.2.10 of the report.

13.       Approved the HRA Major Works Capital Programme, detailed in Appendix 2 of this report and will refer it to full Council for final ratification.

14.       Agreed the funding of additional posts as identified within paragraphs 3.2.2 to 3.2.8   of the report.

15.       Agreed the initial funding requirements for the Estate Regeneration Programme, as identified within paragraphs 3.2.12 to 3.2.15.