Issue - items at meetings - Housing Revenue Account Budget and Capital Investment Programme 2022/23 and Medium-Term Financial Strategy

RESOLVED:

That the Housing Committee:

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

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

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

That Housing Committee approves and recommends to Policy & Resources Committee:

2.4       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.

2.5       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.

2.6       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.

2.7       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.

2.8       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

That Full Council:

2.9       Approves the updated HRA Revenue Budget for 2022/23 as shown in Appendix 1 to the report.

2.10     Approves the Capital Programme Budget of £85.077m for 2022/23 and notes the 3-year programme as set out in Appendix 3 to the report.

55.1     The Principal Accountant introduced the report to the committee.

            Answers to Committee Member Questions

55.2     Councillor Mears raised questions relating to capital investment, social housing white paper, housing stock survey and the investments table. The councillor was informed that the capital investment covers ICT systems that support tenants with good data. No revenue is included, and the youth grant will be £255,000 for next year. No comments are allowed on the social housing white paper at this time. The housing stock survey will be sent to the councillor. The investment table covers identified priority areas for investment and is spread over two pages.

55.3     Councillor Mears expressed concerns regarding the Housing Revenue Account (HRA) budget and considered more needed to be given towards recruitment of staff, noted the cost of the set up and considered that the solar panel roll out was good to note, although it could have been started years before.

55.4     Councillor Williams raised a question relating to social rents and was informed that there a number of schemes the maximum use was being gained from each one.

55.5     Councillor Meadows raised questions relating to accessible tools, harmonisation of staff contracts, budget table, HRA shortfall details, sufficient HRA reserves and is HRA reserves set aside to support homes and ending April 2022 ongoing. The councillor was informed that the council can help tenants in many ways and the councillor will be sent a detailed description of accessible tools, the cost of harmonisation was a one off cost, the Revenue Contribution to Capital was shown to be within expenditure. The shortfall in the HRA was matched with an increase in revenue fund and included in funding streams and this was considered a manageable way forward. The £3m HRA reserves are considered acceptable. The rent reduction costs are a one off and not ongoing.

55.6     Councillor Meadows continued raising questions relating to the flexibility to switch resources, costs of Voids, projected reserves of £247m and reasons for tenant’s service charges increase. The councillor was informed that the increases in service charges was to protect tenants from price rises. Switching resources will require Policy & Resources committee for some decisions and any changes will be reported to the tenants. Appendix 1 shows the year on year increases reflecting the high inflation rates across the board, which are then reflected in costs of Voids. The projected reserves are considered acceptable in the 30 year forecast. The repair and maintenance costs is managed as well as possible.

55.7     Councillor Gibson commented that they recognised the rent policy increase in income which backed the costs absorbed this year. The councillor considered the revenue capital funding was insufficient. The council needed to invest in energy efficiency. The social rents programme at Bristol Estate is seen as a good move forward. The rent help for tenants is being reviewed and this is ongoing. The report is good, showing how the repairs and Voids coming back to pre-pandemic levels, £3m additional funding to buy existing builds, and additional reserves against carbon reductions are welcomed. The budget aims for recovery, additional homes, increasing affordable homes and easing pressures whether possible.

55.8     Councillor Williams raised a question relating to tenant service charges and was informed that the charges were different for each building.

55.9     Councillor Hugh-Jones welcomed the s106 sites and noted that the Tourism, Equalities, Communities and Culture Committee (TECC) report was good. It was noted that consultations with tenants regarding retro fitting of heating systems was important and the investment in repairs, Voids and staff were also supported as the where the opportunities to combine fire safety works with the retro fitting programme.

            Vote

55.10   A vote was taken, and the committee agreed by 7 to 2 to agree the recommendations.

RESOLVED: That the Housing Committee:

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

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

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

That Housing Committee approves and recommends to Policy & Resources Committee:

2.4       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.

2.5       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.

2.6       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.

2.7       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.

2.8       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

That Full Council:

2.9       Approves the updated HRA Revenue Budget for 2022/23 as shown in Appendix 1 to the report.

2.10     Approves the Capital Programme Budget of £85.077m for 2022/23 and notes the 3-year programme as set out in Appendix 3 to the report.