Issue - meetings

This report provides an overview of the new Housing Revenue Account (HRA) self financing system and the impact of this reform on the Housing Business Plan.  It asks members to agree the outline summary business plan, with a view to receiving a further more detailed report later in 2012.  It also asks members to make key decisions required to maintain the financial stability of the HRA, namely the 2012/13 average rent increase and the proposed level of overall capital expenditure.  

RESOLVED:        i)               That approval be given to the average rent increase for 2012/13 as set out in paragraphs 6 to 10 of the report.

ii)              That the HRA revenue plan recommended to Council within the Financial Strategy report on this agenda as set out in Annex 1 be noted.

iii)             That the HRA capital investment plan as set out in Annex 1, that will be recommended to Council within the Capital Budget report elsewhere on this agenda be noted.

REASON:       i) and iii)       To ensure the ongoing financial stability of the HRA and allow work on improving the quality of the council’s affordable housing to continue.

ii)              To ensure the ongoing financial stability of the HRA

Members considered a report which provided an overview of the new Housing Revenue Account (HRA) self financing system and the impact of this reform on the Housing Business Plan.

The new system would involve the reallocation of housing debt based on whether the valuation of each council’s housing business was higher than their existing debt. It had been estimated by the Government that the value of the authorities housing business was £145m, some £122m higher than the existing level of housing debt.

Information on progress with rent restructuring and the phased change in rents by 2012 was detailed in paragraphs 6 and 7 of the report. It was reported that taking into account the rent calculations on individual properties and the impact of moving all rents towards the target rent specified by the Government that this would result in an actual average increase of 7.4%.

Further information in respect of the proposed debt strategy and treasury management arrangement were provided together with the outline summary business plan at Annex 1 of the report.

Following further discussion it was

RESOLVED:        i)               That approval be given to the average rent increase for 2012/13 as set out in paragraphs 6 to 10 of the report.

ii)              That the HRA revenue plan recommended to Council within the Financial Strategy report on this agenda as set out in Annex 1 be noted.

iii)             That the HRA capital investment plan as set out in Annex 1, that will be recommended to Council within the Capital Budget report elsewhere on this agenda be noted.

REASON:            i)               To ensure the ongoing financial stability of the HRA and allow work on improving the quality of the council’s affordable housing to continue.

ii)              To ensure the ongoing financial stability of the HRA

iii)             To ensure the ongoing financial stability of the HRA and allow work on improving the quality of the council’s affordable housing to continue.