Agenda item

RESOLVED:  That Cabinet recommended Council to approve: -

a)    The HRA revenue budget for 2024-25 of £65.49m.

b)    An average maximum rent increase of 7.7% per dwelling, in line with the legislation and the government’s amended national rent standard, to take effect from 1 April 2024.

c)    An average maximum increase of 7.7% in garage rents and commuter surcharges to take effect from 1 April 2024.

d)    An average increase of 7.7% in tenants and leaseholders service charges with effect from 1 April 2024.

e)    The HRA capital programme for 2024-25, noting the future year estimated commitments, and proposed sources of finance.

f)     The total management fee of £34.9m for NPH to deliver the HRA services in scope for 2024- 25.

g)    The setting of the working balance at £6m, with the assessed minimum level of £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 2024-25 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 2024.

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 within national standards in relation to rent increases and is able to meet its wider duties and obligations to tenants.

ALTERNATIVE OPTIONS:

None

At the Chair’s invitation Councillor Malcolm Longley presented the report, copies of which had been previously circulated.

Councillor Adam Brown noted that most of the rent increase would be covered by housing benefit and that the council was working hard with NPH (Northamptonshire Partnership Homes) on its own hardship fund.

Councillors made the following comments.

·         It was noted that the way that universal credit works almost guarantees that some renters would end up in arrears.

·         The importance of social housing and not affordable housing was mentioned to cater for those residents in the lower earning bracket.

RESOLVED:  That Cabinet recommended Council to approve: -

a)    The HRA revenue budget for 2024-25 of £65.49m.

b)    An average maximum rent increase of 7.7% per dwelling, in line with the legislation and the government’s amended national rent standard, to take effect from 1 April 2024.

c)    An average maximum increase of 7.7% in garage rents and commuter surcharges to take effect from 1 April 2024.

d)    An average increase of 7.7% in tenants and leaseholders service charges with effect from 1 April 2024.

e)    The HRA capital programme for 2024-25, noting the future year estimated commitments, and proposed sources of finance.

f)     The total management fee of £34.9m for NPH to deliver the HRA services in scope for 2024- 25.

g)    The setting of the working balance at £6m, with the assessed minimum level of £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 2024-25 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 2024.