Issue - meetings

The Chief Finance Officer to present a report which asks Executive to recommend to Council the financial strategy for 2022/23 to 2026/27, including detailed revenue budget proposals for 2022/23.

Resolved:  (i)      That the charge of a 300% premium on Council Tax for properties empty for over 10 years, as described in paragraph 130 of the report, be approved.

(ii)      That approval be given to apply the average rent increase of 4.1%, based on national formulas linked to RPI and CPI, to all rents for 2022/23, with the exception of shared ownership tenants, as described in paragraphs 188 and 190.

(iii)     That approval be given to apply the average rent increase of 5.4%, based on national formulas linked to RPI and CPI, to shared ownership tenants that have held an equity share in their property for more than 12 months as at 1 April 2022, on the portion of the property owned by City of York Council, as described in paragraph 191.

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

[See also under Part B]

The Chief Finance Officer presented a report which asked Executive to recommend to Council the financial strategy for 2022/23 to 2026/27, including detailed revenue budget proposals for 2022/23.  The report also sought Executive approval for increases to the council tax premium for empty properties and to social housing rents, as a result of changes in government policy.

The strategy would deliver a balanced budget for 2022/23, with savings proposals totalling £6.4m.  Overall, £16.135m additional revenue funding would be added to the budget to meet continuing pressures on adult social care and children’s services, support the council’s response to the Covid-19 pandemic and maintain progress on the objectives of the Council Plan.  The proposals were predicated on a basic council tax increase of 1.99% in 2021/22, plus an additional increase of 1% in line with the government’s social care precept.  The net revenue budget of £135.384m would be funded by council tax income of £102.043m and retained business rates of£33.341m . 

The report included statutory advice from the s151 Officer, at paragraphs 245-269.  A summary of the budget expenditure and savings proposals was provided in Annexes 1 and 2, with HRA growth and savings proposals in Annexes 6 and 7.  Results of consultation with residents and businesses were detailed in Annex 4.

The Chair commented on the major financial pressures faced by councils across the country and efforts to seek more funding from government.  Against this background, the budget sought to stabilise the council’s financial position and provide extra support to vulnerable people.

Resolved:  (i)      That the charge of a 300% premium on Council Tax for properties empty for over 10 years, as described in paragraph 130 of the report, be approved.

(ii)      That approval be given to apply the average rent increase of 4.1%, based on national formulas linked to RPI and CPI, to all rents for 2022/23, with the exception of shared ownership tenants, as described in paragraphs 188 and 190.

(iii)     That approval be given to apply the average rent increase of 5.4%, based on national formulas linked to RPI and CPI, to shared ownership tenants that have held an equity share in their property for more than 12 months as at 1 April 2022, on the portion of the property owned by City of York Council, as described in paragraph 191.

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