Housing Revenue Account (HRA) 30 Year Financial Business Plan
- Meeting of Cabinet, Tuesday, 16th February, 2021 10.00 am (Item 92.)
- View the background to item 92.
As detailed in the recommendations.
Councillor Hughes introduced the report which sought approval of the Housing Revenue Account (HRA) 30 year Financial Business Plan and the HRA Budget for 2021/22.
The Housing Revenue Account was required to produce a 30 year Business Plan which set the strategic context for the 2021/22 budget for housing and included:
- Ensuring affordability for our tenants was at the core of our considerations;
- Our service costs were efficient and value for money;
- That the treasury management strategy continued to meet the HRA new and ongoing borrowing requirements;
- A balanced budget was set with a minimum of 4% surplus revenue over expenditure;
- Maximise revenue efficiencies to minimise borrowing;
- Continue to deliver new build Council Housing;
- Maintain the drive to ensure homes were energy efficient; and
- Provide adequate capital to maintain Welsh Housing Quality Standards (WHQS) levels.
Welsh Governments (WG) Rent Policy had been set for 5 years commencing 2020/21 and provided for an annual uplift of CPI+1%. It was therefore proposed to apply an overall uplift of 0.68% to all tenants and in addition apply a transitional uplift of £2 to tenants who paid at least £3 under target rent.
Garage rents were proposed to increase by £0.20 a week taking garage rent per week to £10.03 and garage plot rent would increase £0.03 per week taking plot rent to £1.63 per week.
On service charges, it was proposed to delay the final increase and freeze service charges in the next financial year. The aim of that course of action was to protect tenants who may be experiencing financial difficultly as a result of the pandemic as well as undertaking further work to ensure those services currently subject to service charges were of a high standard and represented value for money.
The capital programme for the next financial year would see the Strategic Housing and Regeneration Programme (SHARP) deliver a total of 71 new homes into the HRA and continue the work to deliver the WHQS which in the main would focus on external work to roofs, windows, doors and environmental works, and to improve parking for tenants. The new build and refurbishment programmes would therefore see investment of nearly £35M in the existing and new homes.
The Housing Service continued to perform well in what had been a very challenging year and Councillor Hughes thanked the workforce for their continuing hard work and the tenants for their ongoing support.
The Chief Officer (Housing and Assets) explained that the report had been submitted to the Tenants Federation on 8th February where it had received full support.
(a) That the Housing Revenue Account (HRA) budget for 2021/22 as set out in the appendices to be report be approved;
(b) That the rent increase of up to 0.69% (plus up to £2) be approved;
(c) That a garage rent increase of £0.20 per week and a garage plot increase of £0.03 per week be approved;
(d) That the freezing for one year an increase in Service Charge recovery be approved; and
(e) That the proposed HRA Capital Programme for 2021/22 be approved.
- Housing Revenue Account (HRA) 30 Year Financial Business Plan, item 92. PDF 114 KB
- Enc. 1 for Housing Revenue Account (HRA) 30 Year Financial Business Plan, item 92. PDF 315 KB
- Enc. 2 for Housing Revenue Account (HRA) 30 Year Financial Business Plan, item 92. PDF 44 KB
- Enc. 3 for Housing Revenue Account (HRA) 30 Year Financial Business Plan, item 92. PDF 224 KB
- Enc. 4 for Housing Revenue Account (HRA) 30 Year Financial Business Plan, item 92. PDF 107 KB