Agenda item

RESOLVED: That Cabinet recommended Council to approve: -

a)    The HRA revenue budget for 2023-24 of £61.19m.

b)    An average maximum rent increase of 7% per dwelling, in line with the legislation and the government’s amended national rent standard, to take effect from 3 April 2023.

c)    An average maximum increase of 10% in garage rents and commuter surcharges to take effect from 3 April 2023.

d)    An average increase of 10% in tenants and leaseholders service charges with effect from 3 April 2023.

e)    The HRA capital programme for 2023-24, noting the future year estimated commitments, and proposed sources of finance.

f)     The total management fee of £32.8m for NPH to deliver the services in scope for 2023-24.

g)    The setting of the minimum working balance at £5m, informed by the outcome of the latest financial risk assessment.

h)    That authority be delegated to the Executive Director of Finance in consultation with the Portfolio Holder for Finance to transfer monies to/from earmarked reserves and the working balance, should that become necessary during the financial year.

i)     That authority be given to the Executive Director of Finance to update the prudential indicators in the Treasury Management Strategy reported to Council.

j)     That authority be delegated to the Executive Director of Finance in consultation with the portfolio holder for Finance to amend the capital programme for 2023-24 going forward so that it accurately reflects issues such as slippage on current year projects that will need to be added to the programme, any amendments made to existing capital programmes, adjustments to accommodate any future use of capital receipts policy, and for any other reason where the capital programme needs to be adjusted.

k)    That authority be delegated to the Executive Director of Finance to make any technical changes necessary to the papers for the Council meeting of 22 February 2023.

REASONS RESOLVED:

1.    To ensure that the HRA reflects the statutory requirement under Section 74 of the Housing and Local Government Act 1989 to account separately for local housing services.

2.    To ensure the Council sets a balanced HRA and avoids going into deficit operating, within national standards in relation to rent increases.

3.    To ensure that the Council is able to meet its wider duties and obligations to tenants.

4.    To ensure that the Council complies with its Constitution and all other relevant requirements in setting the budget for West Northamptonshire Council.

ALTERNATIVE OPTIONS:

None

At the Chair’s invitation Councillor Longley presented the report and Councillor Brown highlighted the salient points.  The rent increase of 7% had been essential to allow NPH to maintain properties and pay staff.  80% of NPH tenants have rent covered by universal credit.  The other 20% would have to find an extra £30 per month.  A hardship fund to mitigate the rent increase had been budgeted for.

Councillors made the following comments:

·         How much would the hardship fund provide for each tenant and how would they get it?  Help needed to be provided for all those in Housing Association properties, not just NPH.

·         It was suggested that the hardship fund form was difficult to complete.

·         Could the Council’s pension fund be used to borrow money for providing new housing?

·         The proposals for Ecton Brook were welcomed.

Councillor Brown advised that the tenant support details were being worked out.  This would only be for NPH tenants but WNC were offering cost of living help to residents.

Councillor Longley noted that hardship funds were often not taken up.  Pension fund borrowing would be looked into.

The Executive Director Finance advised that the hardship fund had been better used this year.

RESOLVED: That Cabinet recommended Council to approve: -

a)    The HRA revenue budget for 2023-24 of £61.19m.

b)    An average maximum rent increase of 7% per dwelling, in line with the legislation and the government’s amended national rent standard, to take effect from 3 April 2023.

c)    An average maximum increase of 10% in garage rents and commuter surcharges to take effect from 3 April 2023.

d)    An average increase of 10% in tenants and leaseholders service charges with effect from 3 April 2023.

e)    The HRA capital programme for 2023-24, noting the future year estimated commitments, and proposed sources of finance.

f)     The total management fee of £32.8m for NPH to deliver the services in scope for 2023-24.

g)    The setting of the minimum working balance at £5m, informed by the outcome of the latest financial risk assessment.

h)    That authority be delegated to the Executive Director of Finance in consultation with the Portfolio Holder for Finance to transfer monies to/from earmarked reserves and the working balance, should that become necessary during the financial year.

i)     That authority be given to the Executive Director of Finance to update the prudential indicators in the Treasury Management Strategy reported to Council.

j)     That authority be delegated to the Executive Director of Finance in consultation with the portfolio holder for Finance to amend the capital programme for 2023-24 going forward so that it accurately reflects issues such as slippage on current year projects that will need to be added to the programme, any amendments made to existing capital programmes, adjustments to accommodate any future use of capital receipts policy, and for any other reason where the capital programme needs to be adjusted.

k)    That authority be delegated to the Executive Director of Finance to make any technical changes necessary to the papers for the Council meeting of 22 February 2023.