Decision details

This report seeks Executive endorsement for the revised budget for 2012/13, the base budget, rent increases and fees and charges for 2013/14 and the capital programme and it's financing for the years 2012/13 to 2016/17.

The Executive recommended and the Council approved, in February 2012, the base budget and rent increase for 2012/13, for Housing Revenue Account services.

This report sets out the Housing Revenue Account revised budget for 2012/13 and base budget for 2013/14 along with the capital programme and it's financing for the years 2012/13 to 2016/17.  The report examines the issues affecting the Housing Revenue Account, including changes to housing benefit and the rent increase with effect from 1 April 2013.

The Government introduced a system of rent setting, common to local authorities and registered providers, based on relative property values and local earnings levels.  The first stage of the restructuring was introduced in 2003/04, and there was, initially, a ten year period from April 2002 for convergence between local authorities and registered social landlords to be achieved.  The period to converge rents is reviewed every year and they are now set to converge in 2015/16.

Council budgets are susceptible to changes in the level of expenditure and income caused by factors outside the Council’s control.  A risk assessment has been carried out to indicate the effect on housing balances of changes in the level of expenditure and income. This can be used to estimate the account balances needed to provide a prudent level of reserves and a working balance.

(a)       individual rent increases in line with the rent restructuring model, be approved for Council dwellings with effect from 1 April 2013;

(b)       rents for Council garages be increased by 5% with effect from 1 April 2013;

(c)       discretionary fees and charges be increased to provide a minimum increase of 5% with effect from 1 April 2013;

(d)       the revised budget for 2012/13 be approved;

(e)       the base budget for 2013/14 be approved;

(f)        the capital programme and financing for 2012/13 to 2016/17 be approved; and

(g)       annual budgets and assumptions are set with the aim of ensuring sufficient surpluses are held to repay debt on the date of maturity of each loan.