Agenda item

To note issues associated with the housing revenue account.

To instruct officers to provide a final report to cabinet January 2016 on rent setting after consultation with residents.

RESOLVED:

1.  That a rent decrease of 1.0% for all housing revenue account (HRA) dwellings (including estate voids and hostels) with effect from 4 April 2016 be noted on a provisional basis. This is in accordance with the provisions of the Welfare Reform and Work Bill currently passing through Parliament, and is contrary to previous council policy regarding rents. The average dwelling rent in 2016/17 under such a reduction would be £100.24 per week (a fall of £1.01 per week on average).

2.  That it be noted that the rental base will reduce by c. £28 million over the next four years from that previously predicated in the HRA business plan. The compound effect of the rent reduction and loss of resources over the same period is c. £62 million, which has necessitated changes to the business plan model going forward.

3.  That with regard to other HRA-wide charges, no change to tenant service charges, comprising the estate cleaning, grounds maintenance, communal lighting and door entry maintenance charges as set out in paragraphs 50 – 51 of the report with effect from 4 April 2016 be noted on a provisional basis.

4.  That no increase to sheltered housing service charges as set out in paragraph 52 with effect from 4 April 2016 be noted on a provisional basis.

5.  That no increase in direct charges for garages, store sheds and parking bays be noted on a provisional basis, and the proposals of the garages working party regarding the introduction of fixed service charges for qualifying units as set out in paragraphs 53 – 54 of the report and that any decision regarding the introduction of these charges be delegated by the leader of the council to the cabinet member for housing.

6.  That no increase to district heating and hot water charges as set out in paragraphs 55 – 56 of the report with effect from 4 April 2016 be noted on a provisional basis.

7.  That water and sewerage charges levied by Thames Water are liable to an inflationary uplift as set out at paragraph 57 of the report be noted, but as yet the council has not been informed by Thames Water of what that increase will be.

8.  That a commitment to ensure that savings proposals are primarily based on efficiencies be reaffirmed, and where staffing reductions form part of any savings proposal, that due consultation and process is followed with trade unions, as paragraph 42 of the report notes.

9.  That officers are instructed to provide a final report on rent setting and the HRA Budget for 2016/17 after due consultation processes with residents have been followed for consideration at their meeting on 26 January 2016.