Agenda item

To consider the call-in of executive decision ED1372.

The Scrutiny Committee was informed that the Executive at its meeting on 6 February 2012 had considered proposals for the level of increase in rent and service charges and the budget for the Housing Revenue Account for 2012/13, and proposals for charges for Carecall and Sheltered Warden services in 2012/13.

The Executive had recommended that the Council Meeting give approval to the following:-

·         an increase in the average rent of 8.1% for dwelling rents;

·         an increase of 6.1% for garage rents;

·         service charges increasing as outlined in paragraph 3.2 of the report;

·         a 6.1% increase in Carecall Charges;

·         a 6.1% increase in Warden charges;

·         that void properties be advertised at their target guideline rent from April 2012; and

·         the Housing Revenue Account Budget for 2012/13 as set out in Appendix 1 of the report, including the adjustments to the Stockport Homes Management Fee.

The decision of the Executive had been called in by Councillors Walter Brett, Sheila Bailey and David White.  Councillor White explained his reasons for ‘calling-in’ the decision, namely that there was concern in relation to the proposed rent level increase and its affordability for tenants particularly in the light of the decisions of other councils to levy increases below that of 8.1% proposed in Stockport.

At the discretion of the Chair, two tenant representatives were afforded the opportunity to make a statement to the Scrutiny Committee.

The following comments were made/ issues raised:-

·         The proposed rent increase had been consulted upon prior to its consideration by the Executive by a dedicated HRA Panel which included tenant representation.  In response, councillors commented that the Panel comprised a very small number of tenants and had the proposals been consulted upon more widely, then a different view may have been formed.

·         A discussion took place in relation to the proposals to repay existing debt within a 23 year time frame and the implications of rent convergence.

·         The level of rent for Stockport Homes’ tenants after the increase would still be amongst the lowest in the country and the lowest in Greater Manchester.

·         A small reduction in rent levels at this stage would have wide ranging implications with a 1% reduction having an impact of £20 million over the life of the Business Plan.

·         The proposed rent increase had been set at a level which would ensure that Stockport Homes’ residents saw continued improvement in the quality of the housing stock.

It was then

MOVED AND SECONDED – That Executive Decision ED1372 in respect of ‘Housing Revenue Account (HRA) Budget and Rent Levels for 2012/13’ be referred back to the Executive Meeting with a recommendation that consideration be given to the Executive Meeting recommending that the Council Meeting give approval to a rent increase below the level of 8.1% previously agreed by the Executive Meeting on 6 February 2012.

For the motion three, against three, abstentions two.

The Chair exercised her casting vote against the motion.

MOTION NOT CARRIED

A named vote was requested in relation to the voting on this motion and the voting was recorded as follows:-

The councillors who voted for the motion were Councillors Sheila Bailey, Walter Brett and David White.

The councillors who voted against the motion were Councillors Pam King, Mags Kirkham and June Somekh.

The councillors who abstained were Councillors Syd Lloyd and Alanna Vine.

FURTHER MOTION MOVED AND SECONDED – That no further action be taken.

For the motion three, against three, abstentions two.

The Chair exercised her casting vote in favour of the motion.

A named vote was requested in relation to the voting on this motion and the voting was recorded as follows:-

The councillors who voted for the motion were Councillors Pam King, Mags Kirkham and June Somekh.

The councillors who voted against the motion were Councillors Sheila Bailey, Walter Brett and David White.

The councillors who abstained were Councillors Syd Lloyd and Alanna Vine.

It was then

RESOLVED – That no further action be taken.