Agenda item

Councillor Campbell introduced the supplementary paper, which contained the recommendations from the Housing and Communities Select Committee on the Housing Revenue Account Budget and Business Planning. She noted the Committee’s requests that the timing of information be brought into line with the budget scrutiny process. Councillor Campbell also noted that support for the Grenfell Community remained a priority.

Councillor Sof McVeigh, Lead Member for Housing Management, Housing Safety & Building New Homes, introduced report, setting out the background to the proposed decision. She informed Members that the  Government’s rent settlement was not known until 4 January 2024 while inflation pressures had increased the capital programme costs from £400m to £600m. While she welcomed the new social housing legislation, she noted that this would raise management costs. Councillor McVeigh stated that that no decision to raise rents was taken lightly, although the Council had a £500k tenancy support fund.

In response to a question, Officers confirmed that although the energy market was volatile, it was hoped that heating charges would be 10 to 15% lower than 2023-2024. They explained how the reduction in management costs had come from a reassessment of the pension provision, with the surplus being redirected into supporting the capital programme.

Councillor Weale, chair of Overview & Scrutiny Committee, noted the problems with bringing this paper to the Select Committee and added that there would be a meeting with relevant officers to improve the process next year.

The Leadership Team RESOLVED, for the reasons set out in paragraph 3.1- 3.5 and elsewhere within the report, that the recommendations at paragraph 2.1 and paragraphs 2.1 and 2.2 of the supplementary papers be adopted.

The Leadership Team accepted the Housing and Communities Select Committee recommendations:

(i)             That the timing of scrutiny of the HRA budget be brought in line with other business areas of the Council, taking place in early December annually.

(ii)            •That support for the local community affected by the Grenfell Tragedy in addition to the Grenfell survivors and bereaved be listed as a priority in the updated Housing Strategy.

(iii)          That the Committee’s serious concerns regarding the effects of the rent and service charge increases on vulnerable tenants and leaseholders be noted.

The Leadership Team recommended that Full Council:

                        i.         Approve a rent increase of 7.7% effective from Monday 1 April 2024. This equates to an average weekly rent of £151.10 (set out in section 5 of the report).

                       ii.         Agree to maintain the Tenant Support fund and increase the budget to £0.5 million for 2024/25 as set out in section 5 of this report.

                      iii.         Approve the HRA revenue budget for 2024/25 as set out in Appendix A.

                     iv.         Approve the 2024/25 Fees & Charges as set out in Appendix B.

                       v.         Approve the five-year Capital Programme (2024/25-2028/29) as detailed in Appendix C.

                     vi.         Consider and approve the updated Medium-Term Financial Plan for the HRA.

                    vii.         Agree to develop a new Non-Estate Property Disposal Policy and authorise the Executive Director of Housing and Social Investment, following consultation with the Lead Member for Housing Management, Housing Safety & Building New Homes to implement the new policy in-line with the constitution (set out in section 8 of this report).

                   viii.         Note the key assumptions in the business plan and the inherent risks and uncertainties as set out in sections 9 to 17 of this report.

Action by: Executive Director of Housing and Social Investment