Issue - meetings

To consider a report of the Executive Councillors (Corporate, Customer & Community Services) and (Economic Development & Regeneration).

The Executive Councillor (Economic Development & Regeneration) (Councillor Patrick McAuley) submitted a report (copies of which had been circulated) requesting the Council Meeting to set the level of rent and service charges in the Housing Revenue Account (HRA) and approve the HRA budget for 2015/16.

RESOLVED – (40 for, 2 against, 17 abstentions) That approval be given to:-

(i)         An increase in the average social rent of 2.2% for dwelling rents;

(ii)        An increase of 2.8% for rents of shared ownership properties;

(iii)       An increase of 2.2% for garage rents;

(iv)       Service charges increasing as outlined in paragraph 3.2;

(v)        A 2.2% increase in Carecall Charges;

(vi)       A 2.2% increase in Warden Charges; and,

(vii)      The Housing Revenue Account Budget for 2015/16 as set out in Appendix 1.

The names of those councillors voting on this resolution were recorded as follows:-

Those councillors who voted for the resolution were:-

The Mayor (Councillor Kevin Hogg); The Deputy Mayor (Councillor Linda Holt); Councillors Geoff Abell, Ben Alexander, Shan Alexander, Brian Bagnall, Paul Bellis, Andrew Bispham, Stuart Bodsworth, Laura Booth, Peter Burns, Martin Candler, Sue Derbyshire, Kevin Dowling, Lord Goddard, Chris Gordon, Lenny Grice, Daniel Hawthorne, Keith Holloway, Sylvia Humphreys, Sue Ingham, Oliver Johnstone, Pam King, Mags Kirkham, Hazel Lees, Syd Lloyd, Patrick McAuley, John McGahan, Wendy Meikle, Adrian Nottingham, Wendy Orrell, John Pantall, Paul Porgess, Iain Roberts, June Somekh, Alanna Vine, Lisa Walker, William Wragg, John Wright and Suzanne Wyatt.

Those councillors who voted against the resolution were:-

Councillors Brian Hendley and Paul Moss.

Those councillors who abstained were:-

Councillors Sheila Bailey, Kate Butler, Walter Brett, Richard Coaton, Dean Fitzpatrick, Colin Foster, Alexander Ganotis, Tom Grundy, Philip Harding, Tom McGee, Chris Murphy, Maureen Rowles, John Taylor, Andrew Verdeille, Wendy Wild, David Wilson, Elise Wilson.

To consider a joint report of the Executive Councillors (Corporate, Customer & Community Services) and (Economic Development & Regeneration)

The report recommends the level of increase for rent and service charges for the Housing Revenue Account (HRA) in 2015/16 and provides a recommended HRA budget for 2015/16 is presented.  In addition the report recommends the approval of the transfer of garages and commercial properties currently contained within the HRA to the General Fund.

The Executive is asked to:

•      Approve the appropriation of garages and commercial properties currently contained within the HRA to the General Fund on the basis that they are no longer required for the purposes for which they were originally acquired and contained within the HRA;

•      Recommend that the Council Meeting approves:

a.    An increase in the average social rent of 2.2% for dwelling rents;

b.    An increase of 2.8% for rents of shared ownership properties;

c.    An increase of 2.2% for garage rents;

d.    Service charges increasing as outlined in paragraph 3.2;

e.    A 2.2% increase in Carecall Charges;

f.     A 2.2% increase in Warden Charges; and,

g.    The Housing Revenue Account Budget for 2015/16 as set out in Appendix 1.

Officer contact: Michael Cullen, 0161 474 4631, Michael.cullen@stockport.gov.uk

The Executive Councillor (Economic Development & Regeneration) submitted a report (copies of which had been circulated) inviting the Executive to consider the draft Housing Revenue Account (HRA) for 2015/16 and the proposed level of increase for rent and service charges. The report also proposed the transfer of garages and commercial properties currently contained within the HRA to the General Fund to increasing the borrowing headroom available for the delivery of future council housing.

RESOLVED – That in relation to the Housing Revenue Account (HRA):

·         the appropriation of garages and commercial properties currently contained within the HRA to the General Fund be approved on the basis that they were no longer required for the purposes for which they were originally acquired and contained within the HRA;

·         the Council Meeting be recommended to approve:

-       an increase in the average social rent of 2.2% for dwelling rents;

-       an increase of 2.8% for rents of shared ownership properties;

-       an increase of 2.2% for garage rents;

-       service charges increasing as outlined in paragraph 3.2;

-       a 2.2% increase in Carecall Charges;

-       a 2.2% increase in Warden Charges; and,

-       the Housing Revenue Account Budget for 2015/16 as set out in Appendix 1 of the report.

To consider a joint Report of the Corporate Director for Corporate and Support Services and the Corporate Director and Place Management & Regeneration.

The purpose of this report is to provide the Scrutiny Committee with the opportunity to comment on an illustrative Housing Revenue Account (HRA) Budget. The Executive will be meeting on 10 February to recommend to Council an HRA budget for 2015/16, including the level of rent and service charges. 

The illustrative budget is based on a number of key assumptions set out in the report regarding income from rent and service charges; expenditure commitments contained within the HRA 30 year Business Plan and Asset Management Strategy and indicative spending requirements to support inflationary pressures and identified investment priorities.

The Scrutiny Committee is recommended to comment on and note the report.

Officer contact: Michael Cullen on 0161 474 4631 or email: michael.cullen@stockport.gov.uk

Representatives of the Corporate Director for Place Management & Regeneration and the Corporate Director for Corporate and Support Services submitted a joint report (copies of which had been circulated) providing the Scrutiny Committee with the opportunity to comment on an illustrative Housing Revenue Account (HRA) Budget which would be considered by the Executive at its meeting on 10 February 2015 to recommend to the Council Meeting an HRA budget for 2015/16, including the level of rent and service charges.

The illustrative budget was based on a number of key assumptions set out in the report regarding income from rent and service charges; expenditure commitments contained within the HRA 30 year Business Plan and Asset Management Strategy and indicative spending requirements to support inflationary pressures and identified investment priorities.

The Executive Councillor for Economic Development & Regeneration (Councillor Patrick McAuley) attended the meeting to answer members’ questions.

The following comments were made/ issues raised:-

·        Potential participants were notified that the proposed rent increase would be the subject of discussion at the two Stockport Homes customer hub meetings as the matter was placed as an item on the agenda for those meetings.  Text messages were also sent to all those customers for whom Stockport Homes had mobile telephone numbers publicising the meetings.

·        Concern was expressed in relation to the number of Right to Buy sales and what the Council could do to reduce these numbers.  In response it was stated that the Right to Buy could not be curtailed by the Council, however as part of the information pack sent to prospective purchasers, a leaflet was included which clearly explained the implications of home ownership for the tenant.

·        It was noted that the original projection of Right to Buy sales within the 30 year business plan had been 20 per year; however in 2013/14 there had been 82 such sales.  In the light of this elevated figure, the forecast of 45 sales during 2015/16 seemed optimistic.  In response, it was stated that the number of sales peaked following government announcements relating to the Right to Buy and that an oscillating pattern of sales had been a feature of sales in the past.

·        It was commented that the report had identified that the contract price for heating had increased significantly in recent years and the potential for the Council to renegotiate its contract was explored.  In response, it was stated that notwithstanding the recent increases, the rate paid by Stockport Homes was still less than the rate paid by domestic properties for heating.

·        Members welcomed the proposal to transfer a number of assets valued at £4.475m from the HRA to the General Fund thereby increasing the amount of borrowing headroom that could be available for the future provision of new housing within the borough.

·        Rent increases from April 2014 were calculated using Consumer Price Index  inflation (as at September in the preceding year) + 1% annually.  The risk to the Stockport Homes Business Plan should CPI remain at its current level was discussed.

·        Clarification was sought on those service charges which were eligible for housing benefit support.

RESOLVED – (1) That the report be noted.

(2) That the Executive be informed of this Scrutiny Committee’s support for the transfer of a number of assets (garages and commercial properties) from the HRA to the General Fund thereby increasing the amount of borrowing headroom that could be available for the future provision of new housing within the borough.