Agenda item

Councillor Lesley Kelly, Cabinet Member for Housing & Public Protection, introduced the report

The report before Cabinet detailed a budget for the Council’s Housing Revenue Account (HRA) and HRA Capital Programme.  It was explained that from 2012 the position of the HRA had changed as a result of the introduction of Self Financing HRAs. An update to the HRA Business Plan was provided as an appendix to the report.

It was noted that the HRA remains a ring-fenced account that is used to manage the Council’s own housing stock. The proposed budget would enable the Council to manage the stock to a reasonable standard and to deliver the next phase of the Council’s Decent Homes Programme. The report sets out the income resources the Council has available to spend on housing; it also set out the current HRA financial position and proposed spending plans for 2013/14.

In addition, the report detailed the proposed rents, service charges and other charges for Council tenants for the year 2013/14.

Reasons for the Decision

The Council is required to set the housing rent, service charges and a budget in accordance with the Local Government and Housing Act 1989.

Other Options Considered

There were no alternative options in so far as setting a budget was concerned. However, there were options in respect of the various elements of the budget. These were considered in preparing the budget and cover such matters as the rent and service charge increase, budget growth and capital programme proposals.

A view was expressed that the above-inflation increases in rents and service charges would have a detrimental effect on the living standards of the poorer sections of society. Members were reminded that the rents in Havering were the lowest across Greater London and that any increase in rents and service charges would be reinvested into the Decent Homes fund.

Cabinet:

1.            Agreed the Housing Revenue Account Budget as detailed in Appendix 1. 

2.            Agreed that the average rent for Council properties owned by the London Borough of Havering be increased by £4.55, from £81.21 to £85.76 (5.60%) with effect from 1 April 2013, in line with the Government’s policy to restructure rents. This means in effect that rents would increase as set out in the table below:

3.            Agreed that the rent free weeks for 2013/14 be w/c 26 August 2013, the two weeks commencing 23 December 2013, and the week commencing 31 March 2014.

4.            Agreed that tenants’ service charges and heating and hot water charges for 2012/13 be increased or decreased as follows:

5.            Agreed that the service charge for homeless households accommodated in the Council’s hostels be increased by 3.1% to £24.15 a week.

6.            Agreed that charges for high and medium demand garages be increased by 2.6% and that rents for low demand garages be frozen.

7.            Agreed that support charges for mobile support for older people be increased by 3.1% as follows:

8.            Agreed that the Careline support charge be increased by 3.1% as follows:

9.            Agreed that Telecare support charges be increased by 3.1% as set out below:

10.         Agreed to maintain the transitional arrangements to correct the undercharging, by £4.18 increase plus inflation a week, of tenants in the former Hornchurch mobile support pilot scheme, whereby the full charge will be gradually increased over the five year period 2012/13 to 2016/17 inclusive for the 13 tenants paying for this service; for 2013/14 this amounts to an increase to the weekly charge (52 weeks) of £0.87.

11.         Agreed the detailed expenditure items in the 2013/14 and 2014/15 HRA Capital Programmes, based on total resources of £35.7m and £43.781m respectively, as presented in Appendix 2 & 3 and agreed to refer the Programmes to Council for final approval for expenditure.

12.         Approved the development of an affordable housing scheme consisting of nine bungalows for older people at the Garrick House sheltered scheme in Hornchurch, (the funding for which was included in detail in the exempt Appendix 5), consisting of capital grant from the GLA under the Mayor of London’s Care and Support Specialised Housing Fund, subject to the successful outcome of a bid made in January 2013. Also included were right-to-buy receipts allocated to new building housing under the agreement signed with the Department for Communities and Local Government in 2012, and s106 commuted sums to meet the remainder, the exact amount being dependent on the level of GLA grant allocated.