Issue - items at meetings - Housing Revenue Account Budget 2010/11

Report of Director of Adult Social Care & Housing & Director of Finance & Resources (copy attached).

67.1    The Committee considered a report of the Director of Adult Social Care & Housing and Director of Finance & Resources which presented the Housing Revenue Account Forecast Outturn for 2009/10 as at month 6 and the proposed Budget for 2010/11 as required by the Local Government and Housing Act 1989.   Members were required to consider the budget proposals including changes to rents, fees and charges as well as savings and service pressures.

67.2    Councillor Mears drew attention to paragraph 3.10 and expressed concern that the overall subsidy position was an increase in “Negative Subsidy” (the transfer of resources to the government) of £1.590 million to £3.321 million.  Councillor Mears stressed that this was money that should be spent on housing stock.

67.3    Stewart Gover suggested that a strong letter be sent to the government about the issue of the increase in “Negative Subsidy” to £3.321 million.  

67.4    Chris Kift expressed concern about the rise in heating costs, particularly in Whitehawk.  He complained about the overheating of St James House and stressed that tenants were paying for this service.  There was a need for better insulation.                        

67.5    The Assistant Director Housing Management reported that heating costs were higher in blocks with gas central heating following a 53% increase in the gas contract in 2008.   This contract would be ending soon.  Officers would need to ensure there was better value for money with the contract in future.   Meanwhile, there were proposals for overcladding blocks in Whitehawk with high heating costs.  A project group would look at funding opportunities via the Community Energy Savings Programme.    

 67.6   RESOLVED – (1) That Cabinet be requested to recommend Council to:

(a)               Approve the budget for 2010/11 as shown in Appendix 1.

(b)               Approve individual rent increases and decreases in line with rent restructuring principles as determined by the Government.

(c)               Approve the changes to fees and charges as detailed in paragraph 3.14 to 3.23 of the report.

                    (2)       That a letter be sent to central government about the issue of “negative subsidy”.