Subject: Housing Revenue Account Budget and Capital Investment Programme 2022/23 and Medium-Term Financial Strategy

Extract from the Proceedings of the Policy & Resources Committee meeting held on the 10February 2022

Date of meeting: 24 February 2022

Report of: Executive Director for Governance, People & Resources

Contact Officer: Name: Shaun Hughes

Tel: 01273 290569

Email: shaun.hughes@brighton-hove.gov.uk

Ward(s) affected: All

For general release

Action Required of the Committee / Council:

To receive the report from the Policy & Resources Committee for consideration and the recommendations for approval.

Recommendations:

(1) That the updated HRA Revenue Budget for 2022/23 as shown in Appendix 1 to the report be approved; and

(2) That the Capital Programme Budget of £85.077m for 2022/23 be approved and that the 3-year programme as set out in Appendix 3 to the report be noted.

Brighton & Hove City Council

Policy & Resources Committee

4.00pm 10 February 2022

Hove Town Hall - Council Chamber

Minutes

Present: Councillor Mac Cafferty (Chair) Druitt (Joint Deputy Chair), Gibson (Joint Deputy Chair), Allcock (Joint Opposition Spokesperson), Appich (Joint Opposition Spokesperson), Bell (Group Spokesperson), Evans, Miller, Shanks and Yates

Also present: Dr Anusree Biswas Sasidharan, Standing Invitee

Part One

109 Housing Revenue Account Budget and Capital Investment Programme 2022/23 and Medium-Term Financial Strategy

109.1 The Chief Finance Officer introduced the report to the committee.

109.2 Councillor Gibson wanted to highlight how positive the budget was with the housing crisis in the city and noted the close working with the Labour and Green group. The councillor welcomed the £56m for council homes and noted that the budget would sustain levels of affordable housing built by the council and would out stripe the ‘right-to-buy’ losses. The councillor noted the 167 new council homes for next year, although this did not meet the 800 target. The councillor considered it a positive to be investing in homes and truly affordable housing at minimum and social rents. It was noted that £5m was for refitting and updating heating in homes owned by the council. The councillor requested the Members support the budget.

109.3 Councillor Appich considered that vulnerable people in housing should get more support and wanted properties to be at least in a liveable state.

109.4 Councillor Shanks noted this matter needed to be looked at.

109.5 Councillor Gibson agreed and noted this issue was ongoing.

109.6 Councillor Bell requested that officers respond to how improvements to housing support would be funded from the HRA budget. The Executive Director for Housing Neighbourhoods & Communities noted the report set out the ongoing support and letting standards. The issues were being looked at.

109.7 Councillor Allcock noted the housing crisis was the biggest challenge to the city and thanked councillors and officers for working on it. The councillor noted that the big challenge seemed to stem from the 1980s sell off of council homes. The councillor stated they, and the Labour group would be abstaining on the vote for the report.

109.8 Councillor Gibson was disappointed that the Labour group would not be supporting the recommendations.

109.9 A recorded vote was taken, and the following voted for: Councillors Druitt, Gibson, MacCafferty, Shanks. The following abstained: Allcock, Appich, Bell, Evans, Miller and Yates.

109.10 The recommendations were agreed by 4 to 6 abstentions.

109.11 RESOLVED:

(1) Approves a rent increase of up to 4.1% in line with government legislation as detailed in paragraph 4.9 of the report.

(2) Approves the service charges and fees as detailed in Appendix 2 to the report.

(3) Notes the Medium-Term Financial Strategy and 30-year financial projections shown in Appendix 4 to the report.

(4) That the Policy & Resources Committee be recommended to approve the following:

(i) That the updated HRA Revenue Budget for 2022/23 as shown in Appendix 1 to the report be agreed and recommended to full Council for approval;

(ii) That an earmarked reserve of £1.500m for the Covid-19 recovery work required to clear the backlog of responsive repairs and voids be set up as per paragraph 5.1 of the main report.

(iii) That a contribution to the rent reduction reserve of £1.200m be made from the general reserves held by the HRA as per paragraph 5.1 of the main report.

(iv) That a contribution to the Sustainability and Retrofit reserve of £1.200m be made from the general reserves held by the HRA as per paragraph 5.1 of the main report.

(v) That the Capital Programme Budget of £85.077m for 2022/23 be agreed and notes the 3-year programme as set out in Appendix 4 to the report and recommended to full Council for approval; and

109.12 RESOLVED TO RECOMMEND:

(1) That the updated HRA Revenue Budget for 2022/23 as shown in Appendix 1 to the report be approved; and

(2) That the Capital Programme Budget of £85.077m for 2022/23 be approved and that the 3-year programme as set out in Appendix 3 to the report be noted.