Agenda item

Consideration was given to the Housing Accountant’s report which presented the draft HRA revenue and capital budgets for 2020/21.  At the same time as preparing the draft budget, draft Service Plans had been prepared and aligned, and linked back to the Council Plan.

The draft budget had been adopted by Cabinet and was now for consideration by the Housing Review Board.  Recommendations from the Board would be presented to Cabinet on 5 February 2020, when members would finalise budget proposals to be recommended to Council.

The Housing Revenue Account (HRA) currently had 4,190 dwelling and 738 garages.  It was underpinned and influenced by the business plan.  This plan needed to be refreshed to consider:

• The implication of a new maintenance contractor.
• To reflect additional work on asset management planning and to further develop management information from the Housing IT system.
• The end of rent reductions.
• Implication of Universal Credit rollout.
• A need to reconsider the debt level and use of Right to Buy Receipts linked to future development ambitions.
• The implications of the climate change action plan.

This work was planned for 2020/21 to be included in the budget.  The draft 2020/21 budget continued to invest in and maintain existing properties to a high standard with a comprehensive planned programme of expenditure, adaptations and routine repairs.  It also provided an acceptable surplus (£.0927m) which would need to be prioritised between:

·        contributing to the purchase programme to counteract the impact of continuing Right to Buy (RTB) sales and ensuring capital receipts were spent and not returned to government

·        the ambitions in the Council Plan on climate change. 

The Housing Accountant demonstrated some future financial modelling and evaluation for the Board to consider.  This showed that:

·        Financing all elements of the budget was possible.

·        There needed to be a different approach to debt management.

·        There was a requirement of a detailed asset management strategy to underpin the revised business plan.

·        Stress testing, scenario analysis and other investigations were required to ensure all objectives could be met and influence decision making.

Concern was expressed whether there was sufficient funds in the budget for roof repairs.  The Strategic Lead – Housing, Health and Environment advised that the new stock condition survey would provide more up to date information on this need.  The current Business Plan was based on the old stock condition survey.  Following the conclusion of the new survey it was possible that additional money would be needed in the budget.

The Council’s Solicitor raised concerns about the number of disrepair cases that could come forward as a result of private lawyers encouraging tenants to take the Council to court, under the Homes (Fitness for Habitation) Act 2018.  It was noted that a disrepair report would be presented to the Board at its next meeting.  The Housing Accountant replied that there was no specific allocated budget, but that landlord services had funds available for such issues. Monitoring of the situation would enable it to be budgeted for if necessary.  Reference to disrepair had been made in the Service Plan and training was being provided for staff.

RECOMMENDED: 

1.     that the HRA draft revenue and capital estimates are approved.

2.     that the future considerations be noted.