Agenda item

(a)       That the proposed HRA budget for 2013/14, as set out in Appendix 1 of the Cabinet report, which incorporated the proposals for Service Improvements and Efficiencies, as shown in Appendix 2 of the Cabinet report, be approved;

(b)       That the level of rent charges for 2013/14, as set out in paragraphs 3.02 and 3.05 of the report be approved;

(c)        That the level of projected balances at 31^st March, 2014 at 3.20% of total expenditure be approved; and

(d)       That the proposed HRA Capital Programme, as set out in Appendix 3 of the Cabinet report, be approved.

The Head of Housing presented the revenue budget proposals for the Housing Revenue Account (HRA) for the 2013/14 financial year, including proposed rent changes, key areas of income and expenditure, and the level of closing balance at the year end.  She also presented the budget proposals for the HRA Capital Programme 2013/14, which was year two of a six year improvement programme.  The Council was informed that the Cabinet had met on the 19 February, 2013 and had approved the recommendations outlined within the report.  The detailed report presented to Cabinet was attached at Appendix A of the County Council report.

            The Head of Housing gave a detailed presentation which covered the following areas:-

• 2013/14 Budget Strategy and context
• Housing Revenue Account (HRA)
• Welsh Government (WG) – Financial Determinations
• Other charges
• Budget Proposals
• HRA – 2012 outcomes
• HRA 2013 – What Next?
• HRA 2013 – Efficiencies total of £1.326m (8.7% operating costs)
• HRA 2013 – service improvements/costs increases - 765k
• HRA Capital Programme 2012/13 outcomes
• Funding for HRA Capital Programme 2013/14
• HRA Capital Programme overall outcomes against promises after 2 years
• Summary

Councillor H. Brown, Cabinet Member for Housing proposed that the County Council support the recommendations as outlined within the report and thanked the Head of Housing and the workforce for the many improvements within the Housing Service.  In seconding the proposal, Councillor R.G. Hampson also thanked the Head of Housing for the improvements that had been made particularly in reducing the number of void properties and the reduction in time taken to complete non-urgent repairs.

            A number of Members spoke in support of the report and thanked the Head of Housing, her team and the workforce for the improvements made within the Housing Service which were appreciated by tenants.  Councillor S. Jones asked that the comments from Members be passed to the workforce following the meeting.

            Councillor P.G. Heesom thanked the Head of Housing for the report and presentation.  He raised concern on the shortage of affordable housing in Flintshire and the increasing burden welfare reform would have on the tenants of Flintshire.  He asked that the Head of Housing be given an increasing leading role in the Authority to ensure that it was meeting the needs of affordable housing.

            Councillor M.J. Peers thanked the Head of Housing for the positive report.  He commented on the final guideline weekly rent increase and asked how many tenants would be affected by the rent increase together with additional financial burdens as a result of the welfare reform.  He also commented on the financial pressure of £32,740 from void garages and asked why these garages were not being used.

            The Head of Housing responded that approximately 66.7% of the Councils tenants would face no additional hardship as a consequence of the proposed rent increase but this was subject to claimants of housing benefits personal circumstances remaining the same and their household being unaffected by welfare reform.  The Housing Team had visited all tenants who would be affected by welfare reform to explain to them the level of support that they could access.  During 2013/14 a garage review would be undertaken and further proposals, including long term rent levels, investment and redevelopment options would be brought to the Council in order to tackle the number of empty garages. 

            Councillor A.P. Shotton, Leader of the Council commented on the significant response to the housing ballot in the previous year and the expectation this had put on the Council to deliver the Choices document.  He commented on the number of improvements being made to tenant’s homes which provided the Council with sound evidence to demonstrate to the WG during future discussions that the Council could meet the Welsh Housing Quality Standard (WHQS).  He raised concern around the current HRA Subsidy which meant that an estimated £6.1m of rent income was paid to the Treasury and said that he would continue to lobby the WG and WLGA to end the current HRA Subsidy system.  He thanked the Cabinet Member for Housing, the Head of Housing, her team and the workforce for their hard work and said that he looked forward to continued improvements within the housing service in the future.  

            The Chief Executive thanked Members for their comments and spoke of the creative and ambitious way in which improvements had been made to the Housing Service.  He reported that changes to the HRA Subsidy system were currently being considered by Welsh Government through an exit from the UK level system and further discussions between WG and the Council were planned.  The Choices document had made it clear that the Council could only meet the WHQS through continued efficiencies within the service and there was sound evidence to present to the WG to show that this was being achieved.    

            In response to a question from Councillor R.B. Jones, the Head of Housing confirmed that the figure showing the increase in capital funding, as shown in the presentation, should have read ‘£1.355m’ and not ‘£1.855m’ (against fiscal outturns for 2012/13).  She also confirmed that £500,000 of the additional capital funding available had been as a result of the 31 March, 2014 falling on a Monday so the HRA would benefit from the full rental income for that additional week within the 2013/14 budget year. 

RESOLVED:

(a)       That the proposed HRA budget for 2013/14, as set out in Appendix 1 of the Cabinet report, which incorporated the proposals for Service Improvements and Efficiencies, as shown in Appendix 2 of the Cabinet report, be approved;

(b)       That the level of rent charges for 2013/14, as set out in paragraphs 3.02 and 3.05 of the report be approved;

(c)        That the level of projected balances at 31^st March, 2014 at 3.20% of total expenditure be approved; and

(d)       That the proposed HRA Capital Programme, as set out in Appendix 3 of the Cabinet report, be approved.