Agenda item

(Report circulated separately as part of Cabinet agenda.)

6.1  Councillor Ian Wingfield, Deputy Leader and Cabinet Member for Housing Management, introduced the Cabinet report, Housing Revenue Account – Indicative Rent-Setting and Budget Report 2014/15.

6.2  Members asked why the cabinet member was not supporting the Housing Commission’s proposal to borrow more in order to provide more housing units, especially in view of the loss of units in regeneration projects like the Aylesbury.  Councillor Wingfield drew the committee’s attention to page 3 of the report, Self-Financing Parameters.  He stressed that the council needed to be prudent and cautious in planning for a thirty year period.  The second bullet point on page 3 of the report addressed the impact of regeneration.  The council’s aim was to put the HRA on a good financial basis, including making adequate provision for reserves.  There was no imperative to borrow additional funds for existing programmes.

6.3  A member queried whether there was provision within the HRA for any premium arising due to the early redemption of debt.  This might arise if the council chose to re-finance its debt.  Ian Young, Finance Manager, Housing & Community Services, responded that there were currently no plans for early repayment although the HRA contained sufficient reserves should the council wish to consider this.  Payment would be reviewed on an ongoing basis.

6.4  A member highlighted the increase in receipts from leaseholders (page 19) and asked for a more detailed breakdown.  Councillor Wingfield stated that Warm, dry Safe works had brought of lot o programmes forward, increasing the amounts due from leaseholders.  In addition, changes in government policy in respect of right-to-buy discounts had resulted in more applications and therefore an increased number of leaseholders.  The Finance Manager drew attention to paragraphs 47 and 48 of the report and agreed to provide further detail in writing.