Agenda item - Housing Revenue Account Budget and Capital Investment Programme 2019/20 and Medium Term Financial Strategy

Extract from the proceedings of the Policy, Resources & Growth Committee meeting held on the 14^th February, 2019; together with a joint report of the Executive Director for Finance & Resources and the Executive Director for Neighbourhoods, Communities & Housing (copies attached).

75.1         The Mayor noted that the Housing Revenue Account Budget and Capital Investment Programme 2019/20 and Medium-Term Financial Strategy had been taken into consideration as part of the overall budget debate as detailed under Item 73 above.  She also noted that an amendment (Green No.1) had been agreed, and therefore asked for the voting system to be activated and put the recommendations of the Policy & Resources Committee (1-5) as amended to the vote as detailed below:

Housing Revenue Account Budget and Capital Investment Programme 2019/20 and Medium-Term Financial Strategy

77.20   The Mayor confirmed that the motion had been carried by 51 votes with none against with no abstentions.

77.21      RESOLVED:

(1)      That the updated HRA revenue budget for 2019/20 as shown in Appendix 2, (as amended by the Green amendment No.1) to the report (as amended for any change to reserves arising from recommendations (3) and (5) below) be approved;

(2)      That the capital programme budget of £26.964m for 2019/20 be approved and the 3-year programme as set out in Appendix 4 to the report (as amended for any change to the capital programme arising from recommendations (4), (5) and (6) below) be noted;

(3)      That a HRA Rent Support Reserve of £1.050m be created, through a reduction in the reserve funding of the HRA capital programme by borrowing the same, and to apply this reserve in the form of a subsidy over the lifetime of modelled new schemes in order to support the provision of new council homes at lower rents, particularly social rents and 27.5% living wage rents;

(4)      That the Purchase Properties budget be increased by £3.500m and added to the 2019/20 HRA Capital programme to be funded by HRA borrowing and Right to Buy receipts; and

(5)      That a budget of £3.500m be added to the 2019/20 HRA Capital programme to purchase buildings to provide emergency homeless accommodation for inhouse delivery by the council to be funded by HRA borrowing and RTB receipts.