Issue - meetings

To consider a joint report of the Cabinet Member for Sustainable Stockport and the Deputy Leader of the Council and Cabinet Member for Respurces, Commissioning & Governance.

The purpose of this report is to provide a recommended Housing Revenue Account (HRA) Budget including the level of rent and service charges, for the Cabinet to recommend to the Council.

The Cabinet is asked to recommend that the Council Meeting approves:

·         Average rent to increase by 2.7% (CPI + 1%) in 2020/21;

·         Services charge increases as outlined in Section 3;

·         The Housing Revenue Account Budget for 2020/21 as set out in Appendix 1 of the report.

·         Rents and service charge increases to Temporary Accommodation as set out in Appendix 3 of the report.

Officer Contact: Andy Kippax on 0161 474 4319 or email: andy.kippax@stockport.gov.uk

The Cabinet Member for Sustainable Stockport submitted a report (copies of which had been circulated) inviting the Cabinet to consider the rent levels and service charges for the Housing Revenue Account (HRA) and a recommended budget for 2020/21.

The Cabinet Member highlighted the various changes that had been made by the government with regard to rent calculations along with the long-term impact of the four-year reduction in rent charges.  It was stated that this impact had been modelled and that while the HRA remained viable in the short-term, it was likely to face significant financial issues in future years caused by the cessation of rent convergence, an increase in social rents by CPI rather than RPI and changes in the discounts available for acquisitions under the Right to Buy.

RESOLVED – That the Council Meeting be recommended to approve the following in relation to the Housing Revenue Account:-

·         an increase in the average rent by 2.7% (CPI + 1%) in 2020/21;

·         increases in service charges as outlined in Section 3 of the report;

·         the Housing Revenue Account Budget for 2020/21 as set out in Appendix 1 of the report.

·         Increases in rents and service charges to Temporary Accommodation as set out in Appendix 3 of the report.

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

The report provides the Scrutiny Committee with the opportunity to comment on an illustrative Housing Revenue Account (HRA) Budget. The Cabinet will be meeting on 4 February to recommend to Council a HRA budget for 2020/21, 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.

This report takes account of the HRA Rent Strategy 2020 - 2025 which was approved by the Cabinet on 20 August 2019.

The Scrutiny Committee is recommended to comment on the report, the illustrative HRA Budget for 2020/21 and the changes to Temporary Accommodation Rents. 

Officer contact: Michael Cullen  on 0161 474 4631 or email: michael.cullen@stockport.gov.uk , or Andy Kippax on 0161 474 4319 or email: andy.kippax@stockport.gov.uk

The Corporate Director for Place Management & Regeneration submitted a report (copies of which had been circulated) providing an illustrative Housing Revenue Account (HRA) Budget for 2020/21 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 Cabinet Member for Sustainable Stockport (Councillor Sheila Bailey) attended the meeting to respond to councillors’ questions.

RESOLVED – That the report be noted.