Update - Housing Overview and Scrutiny Committee
Housing Revenue Account - Business Plan and Budgets 2021-22 PDF 746 KB
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Minutes:
The report on pages 67 – 76 was presented by Mike Jones.
The Chair commented that people did not like to see bills increasing but it would not be sustainably financial to not increase rents as the Council needed to meet costs. He said that this was not always clear to tenants and that it would be difficult for some during the pandemic. He questioned how Officers would be communicating this to residents and what the alternative would be if rents were not increased. Mike Jones answered that the Council would look to reduce services as an alternative and there was very little discretionary available in the HRA. The rent reduction in past years had significant impacts on the HRA Business Plan and it had been a case of looking at what costs could be cut to maintain the existing level of service. Without a rent increase, inflation would take over the budget and a review of the costs within the HRA would be considered and certain works that were not statutory obligations could be reduced such as improving properties for residents.
The Chair sought reassurances that the service had considered the HRA in detail and that there was no significant amount of ‘waste’ where cost savings could be made without affecting services. Carol Hinvest assured that there was no ‘waste’ and that there was also not a lot of discretionary spend within the HRA. This was spent on the services needed for the Council’s tenants which was identified from the survey results. Roger Harris added that there had been 4 years of rent reduction and that the service had stripped down significant savings in that period. The Chair supported the increases which was needed and it was a moderate increase. He highlighted the importance of communicating the increases clearly to tenants in a sensitive manner.
Councillor Redsell sought more detail on parking areas and garages. Mike Jones explained that the parking areas referred to hardstanding areas and that the maintenance of these. Carol Hinvest added that there were also garage plots that people could rent and build a garage on. In regards to garages, the service would be spending within the budget and the Garage Project Officer had been identifying potential sites for housing or to turn into hardstanding parking spaces.
Councillor Abbas commented that keeping a balanced budget was the priority as well as keeping an income coming in but he felt that with the current pandemic, he would support a 0.5% increase and not the proposed 1.5% increase for rent. He also supported the garage rent increase but not service charges as residents complained that they did not receive all these services. Carol Hinvest highlighted that only 50% of residents paid the service charges and that residents could raise an enquiry if they felt that the service that they were paying for was not value for money. The Chair felt that service charges were controversial and commented that the other option would be to increase rents and ... view the full minutes text for item 38.
Consultation has concluded