Decision details

Recommendations (part 1) a to k were chaired by Diana Minns (Vice Chair /Tenant Representative) and recommendations (part 2) I to w were chaired by Councillor Todd-Jones

 

Matter for Decision

As part of the 2021/22 budget process, the range of assumptions upon which the HRA Business Plan and Medium Term Financial Strategy were based, have been reviewed in light of the latest information available, culminating in the preparation of the HRA Budget Setting Report.

 

The HRA Budget-Setting Report provides an overview of the review of the key assumptions. It sets out the key parameters for the detailed recommendations and final budget proposals and is the basis for the finalisation of the 2021/22 budgets.

 

Decision of Executive Councillor for Housing

Review of Rents and Charges

a)   Approved that council dwellings rents for all social rented properties be increased by inflation of 0.5%, measured by the Consumer Price Index(CPI) at September 2020, plus 1%, resulting in rent increases of 1.5%,with effect from 5 April 2021. This equates to an average rent increase at the time of writing this report of £1.52 per week.

b)   Approved that affordable rents (inclusive of service charge) are reviewed in line with rent legislation, to ensure that the rents charged are no more than 80% of market rent, with rents for existing tenants increased by no more than inflation of 0.5%, measured by the Consumer Price Index(CPI) at September 2020, plus 1%, resulting in rent increases of up to1.5%. Local policy is to cap affordable rents (inclusive of all service charges) at the Local Housing Allowance level, which would usually result in rent variations in line with any changes notified to the authority in this level if these result in a lower than 1.5% increase. As the Local Housing Allowance was increased significantly in late March 2020, affordable rent increases will be capped at 1.5% from April 2021.

c)    Approved that rents for shared ownership properties are reviewed and amended from April 2021, in line with the specific requirements within the lease for each property.

 

d)   Approved that garage and parking space charges for 2021/22, are increased by inflation at 0.9% in line with the level of inflation incorporated into the HRA as part of the Medium Term Financial Strategy process, and that charges for parking permits are reviewed, with resulting charges as summarised in Section 3 of the HRA Budget Setting Report.

e)   Approved the proposed service charges for Housing Revenue Account services and facilities, as shown in Appendix B of the HRA Budget Setting Report.

f)      Approved the proposed leasehold administration charges for 2021/22, as detailed in Appendix B of the HRA Budget Setting Report.

g)   Approved that caretaking, building cleaning, window cleaning, estate services, grounds maintenance, temporary housing premises and utilities, sheltered scheme premises and utilities, digital television aerial, gas maintenance, door entry systems, lifts, electrical and mechanical maintenance, flat cleaning, third party management, specialist equipment and catering charges continue to be recovered at full cost, as detailed in Appendix B of the HRA Budget Setting Report, recognising that local authorities should endeavour to limit increases to inflation as measured by CPI at September 2020 (0.5%) plus 1%,wherever possible.

h)   Approved with any amendments, the Revised Budget identified in Section 4 and Appendix D (1) of the HRA Budget Setting Report, which reflects a net increase in the use of HRA reserves for 2020/21 of £550.

i)      Approved with any amendments, any Non-Cash Limit items identified in Section 4 of the HRA Budget Setting Report or shown in Appendix D (2)of the HRA Budget Setting Report.

j)      Approved with any amendments, any Savings, Increased Income, Unavoidable Revenue Bids, Reduced Income Proposals and Bids, as shown in Appendix D (2) of the HRA Budget Setting Report.

k)    Approved the resulting Housing Revenue Account revenue budget as summarised in the Housing Revenue Account Summary Forecast2020/21 to 2025/26 shown in Appendix J of the HRA Budget Setting Report.

 

The Executive Councillor recommended Council to:

l)      Approve the need to borrow over the 30-year life of the business plan, with the first instance of this anticipated to be in 2022/23, to sustain the proposed level of investment, which includes ear-marking of funding for delivery of a net 1,000 new homes over a 10 year timeframe.

m)  Recognise that any decision to borrow further will impact the authority’s ability to set-aside resource to redeem 25% of the value of the housing debt by the point at which the loan portfolio matures, with the approach to this to be reviewed before further borrowing commences.

n)   Approve the latest Decent Homes Programme, to include updated decent homes expenditure for new build dwellings to recognise the increased ongoing costs of maintaining homes at Passivhaus standards, as detailed in Appendix E of the HRA Budget Setting Report.

o)   Approve the latest budget sums, profiling and associated financing for all new build schemes, including revised scheme budgets for Tedder Way, Kendal Way, Clerk Maxwell, Campkin Road, Colville Road and Kingsway, based upon the latest cost information from the Cambridge Investment Partnership (CIP) or direct procurements, as detailed in Appendices E and H, and summarised in Appendix K, of the HRA Budget Setting Report.

p)   Approve allocation of funds from the budget ear-marked for the delivery of 1,000 net new homes to the five schemes at Fen Road, Ditton Walk, Aragon Close, Sackville Close, and Borrowdale in line with the scheme specific reports presented to Housing Scrutiny Committee in the committee cycle.

q)   Recognition of removal of the budget and associated MHCLG grant income for the acquisition of property to accommodate rough sleepers, following confirmation that the authority was unsuccessful in the 2020/21 round of the Next Steps Grant bid process.

r)     Approve the revised Housing Capital Investment Plan as shown in Appendix K of the HRA Budget Setting Report.

s)    Approve the inclusion of Disabled Facilities Grant expenditure and associated grant income from 2021/22 onwards, based upon 2020/21 original grant levels, with approval of delegation to the Head of Finance, as Section 151 Officer, to approve an in year increase or decrease in the budget for disabled facilities grants in any year, in direct relation to any increase or decrease in the capital grant funding for this purpose, as received from the County Council through the Better Care Fund. Approval of delegation to the Head of Finance, as Section 151 Officer, to determine the most appropriate use of any additional Disabled Facilities Grant funding announced in year, for the wider benefit of the Shared Home Improvement Agency.

t)      Approve delegation to the Strategic Director to review and amend the level of fees charged by the Shared Home Improvement Agency for disabled facilities grants and repair assistance grants, in line with any decisions made by the Shared Home Improvement Agency Board.

u)   Approve delegation to the Strategic Director, in consultation with the Head of Finance, as Section 151 Officer, to draw down resource from the ear-marked reserve for potential debt redemption or re-investment, for the purpose of open market land or property acquisition or new build housing development, should the need arise, in order to meet quarterly deadlines for the use of retained right to buy receipts or to facilitate future site redevelopment.

v)    Approve delegation to the Head of Finance, as Section 151 Officer, to include both expenditure and income budgets in respect of any grant bid made to MHCLG as part of the Next Steps Grant Programme, recognising that any net impact for the HRA will need to be retrospectively incorporated as part of the HRA Medium Term Financial Strategy in 2021/22.

w)  Approve delegation to the Head of Finance, as Section 151 Officer, to make the necessary technical amendments to detailed budgets in respect of the outcome of the review of recharges between the General Fund and the HRA, with any change in impact for the HRA to be incorporated as part of the HRA Medium Term Financial Strategy in September 2021.

 

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 Assistant Head of Finance and Business Manager.

 

The Assistant Head of Finance and Business Manager said the following in response to Members’ questions:

      i.          There was an initial increase in rent arrears for tenanted properties in the first lockdown, this stabilised in May 2020 so the broad trend was that closing cash offices did not increase rent arrears as people moved onto other payment methods e.g. online.

     ii.          There was sufficient provision for bad debt in the Medium Term Financial Strategy. This also set out interest rates for loans.

   iii.          There were no proposals to reduce the number of Open Door (magazine) issues from three to two. Funding for this had not been removed, there was historic underspend in the resident grant budget over a period of years so the budget had been reduced.

   iv.          The Community Alarm Charge of £5.32 should include an enhanced response time by the County Council. As this service would not be provided, the figure was expected to change to £3.42 for a response within sixty minutes (as opposed to thirty under the £5.32 figure). This was subject to written confirmation from the County Council, which would then be agreed by Housing Scrutiny Committee and at Full Council.

 

The Executive Councillor said the following in response to Members’ questions:

      i.          The Council had a 30 year business plan to build and maintain housing stock.

     ii.          The above inflation rent increase was fair and in line with other local authorities. Cambridge City Council had measures in place to assist people who had difficulties paying rent.

   iii.          Reiterated that rent arrears were stable over a period of several months. Sufficient resources were in place to support tenants who experienced financial difficulties. No-one would be evicted during the pandemic. The council was trying to balance income with investment and service provision. Rents would be kept under review.

 

Councillor Martinelli introduced the Liberal Democrat Amendment to the 2021/22 Housing Revenue Budget.

 

Councillor Robertson requested a change to the recommendation in the Officer’s report (amendment shown as bold text):

1.3ii A proposal to include a revenue bid for £50,000 to fund a project to explore over two years water conservation options for the existing housing stock, recognising that the findings from the project, once fully explored and quantified, are likely to result in a future capital bid to facilitate the desired investment in the housing stock.

 

The Committee unanimously approved this amended recommendation.

 

The following vote was chaired by Diana Minns (Vice Chair  / Tenant Representative).

 

The Chair decided that the recommendations highlighted in the Liberal Democrats Group alternative budget should be voted on and recorded separately:

 

1.3i A proposal to include a revenue bid of £30,000 to fund a

project to review responsive and void repairs service

standards, with the aim to improve service levels for council

property maintenance, to manage tenant expectations and

reduce complaints. 

 

3 votes in favour to 11 against. The amendment was lost.

 

1.3ii A proposal to include a revenue bid for £50,000 to fund a project to explore over two years water conservation options for the existing housing stock, recognising that the findings from the project, once fully explored and quantified, are likely to result in a future capital bid to facilitate the desired investment in the housing stock. 

 

Committee unanimously in favour. The amendment was accepted.

 

1.3iii A proposal to extend the funding for the Energy Assessor post, from the current two year fixed term funding, for a further three years (at a cost of £47,200 per annum), to

ensure that energy improvements can be considered for a

greater number of existing council homes, recognising that

the work of the Energy assessor is likely to result in future

capital bids to facilitate the required investment in the

housing stock.

 

3 votes in favour to 11 against. The amendment was lost.

 

Diane Best introduced the Resident Representative Amendment to the 2021/22 Housing Revenue Budget.

 

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

      i.          Fly tipping was an issue to address.

     ii.          Councillors expressed concern that enforcement action could be taken against a whole block of flats if an individual perpetrator could not be identified.

   iii.          Extra personnel could be needed in lockdown to assist tackling fly tipping in lockdown. Clean up days could be re-instated after lockdown. Council enforcement teams liaised with other officers, so if the enforcement team could not take action, other officers would.

 

The Resident Representative alternative budget: 11 votes in favour to 0 against with 3 abstentions. The amendment was accepted.

 

Unanimously resolved to endorse the recommendations a to k of the budget proposal, as amended above. 

 

The following vote was chaired by Councillor Todd-Jones.

 

Resolved (5 votes to 0 with 3 abstentions) to endorse the original recommendations l to v of the budget proposal. 

 

The Executive Councillor approved the recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

No conflicts of interest were declared by the Executive Councillor.