Decision details

·       To review and update the financial assumptions being made for the future of the HRA.

·       To agree the budget strategy and approach to delivering savings for the HRA for 2017/18 and beyond.

Matter for Decision

The Housing Revenue Account Budget Setting Report, considered and approved in January / February of each year was the long-term strategic planning document for housing landlord services provided by Cambridge City Council. 

 

The Housing Revenue Account (HRA) Medium Term Financial Strategy provides an opportunity to review the assumptions incorporated as part of the longer-term financial planning process, recommending any changes in response to new legislative requirements, variations in external economic factors and amendments to service delivery methods, allowing incorporation into budgets and financial forecasts at the earliest opportunity.

 

Decision of Executive Councillor for Housing

          i.        (Recommendation 2a) Approve the Housing Revenue Account Medium Term Financial Strategy attached, to include all proposals for change in:

·     Financial assumptions as detailed in Appendix B of the Officer’s report.

·     2016/17 revenue budgets as introduced in Section 5, resulting from changes in financial assumptions and the financial consequences of change, as introduced in Section 5, detailed in Appendix D of the Officer’s report and summarised in Appendix G.

 

         ii.        (Recommendation 2b) Approved proposals for changes in existing housing capital budgets, as introduced in Sections 6 and 7 of the Officer’s report and detailed in Appendix E of the document, with the resulting position summarised in Appendix H, for decision at Council on 20^th October 2016.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

 

The Committee received a report from the Business Manager/Principal Accountant.

 

The Committee made the following comments in response to the report:

     i.        Sought clarification regarding the expected policy revisions regarding the sale of high value stock. Officers confirmed that this was not yet available. 

    ii.        Expressed concerns that completed, new build properties had been left empty due to technical difficulties with the developer.

 

The Business Manager/Principal Accountant stated the following in response to Members’ questions:

     i.        It was hoped that the, now vacant, South Area Office would realise the anticipated savings. The property was being actively marketed but to date a sub-let of the lease had not been agreed.

    ii.        Agreed with the Committee that tenants needed to be keep informed of developments regarding Universal Credit.

   iii.        Confirmed the approach being taken regarding annual valuation of the housing stock.

  iv.        It was anticipated that the valuation formulas would change to reflect the impact of new policies such as: Pay to Stay, fixed term or short term tenancies.

 

The Strategic Advisor - Housing and Welfare Reform stated that the development of Anstey Way was currently delayed. Rent reduction had impacted on the development programme. It was hoped that devolution funding, which came with less constraints, would allow this project to be completed. ‘Right to Buy’ receipts could not be used for this project.

 

In response to questions from the Committee the Executive Councillor Housing stated the following:

       i.        A joint approach with other authorities was being pursued to push for a deferral of ‘Pay to Stay’ and for an assurance regarding future administration costs of applying the charges.

     ii.        Whilst no firm commitment had been received, the Executive Councillor was quietly confident that the devolution deal would give a five year boost to the construction of new council housing.

 

The Committee resolved by 12 votes to 0 with 2 abstentions to endorse the recommendation 2a (i)

 

The Committee resolved by 6 votes to 0 with 2 abstentions to endorse the recommendation 2b (ii)

 

The Executive Councillor approved the recommendation.