Agenda and minutes

To note the attendance at this meeting of any duly appointed Reserve Members.

Reserve Members may attend meetings:-

(i)                 to take the place of an ordinary Member for whom they are a reserve;

(ii)               where the ordinary Member will be absent for the whole of the meeting; and

(iii)             the meeting notes at the start of the meeting at the item ‘Reserves’ that the Reserve Member is or will be attending as a reserve;

(iv)              if a Reserve Member whose intention to attend has been noted arrives after the commencement of the meeting, then that Reserve Member can only act as a Member from the start of the next item of business on the agenda after his/her arrival.

RESOLVED:  To note the attendance at this meeting of the following duly appointed Reserve Member:-

To receive declarations of personal or prejudicial interests, arising from business to be transacted at this meeting, from:

(a)               all Members of the Committee, Sub Committee, Panel or Forum;

(b)               all other Members present in any part of the room or chamber.

Agenda Item 4 - Housing Reform and Housing Revenue Account (HRA) Budget Setting 2012-13 to 2016-17; Agenda Item 5 - Rent Strategy

Councillor Bob Currie and Councillor Mano Dharmarajah declared personal interests on the above items in that they both attended monthly meetings of the Eastcote Lane Tenants’ and Residents’ Associations.  They would remain in the room whilst the matters were considered and voted upon.

CouncillorKairul Marikar declared a personal interest on the above items in that she was a tenant living in the borough.  She would remain in the room whilst the matters were considered and voted upon.

To receive deputations (if any) under the provisions of Executive Procedure Rule 50 (Part 4D of the Constitution).

RESOLVED:  To note that no deputations were received at this meeting.

Joint report of the Interim Director of Finance and the Corporate Director of Adults and Housing.

In accordance with the Local Government (Access to Information) Act 1985, the following item was admitted late to the meeting.  The Forum was requested to consider this item as a matter of urgency in the interest of providing Members and Tenant and Resident Association Representatives with the most up to date information relating to Housing Reform and Housing Revenue Account (HRA) Budget Setting 2012-13 and Medium Term Financial Strategy (MTFS) to 2014-15, and the Council’s Rental Strategy and rent proposals from 1April 2012.

An officer circulated a report at the meeting which provided the Forum with the Council’s latest position on Housing Reform and Housing Revenue Account Budget Setting 2012-13 and MTFS to 2014-15.  The Forum were advised that:

·                    the Council currently paid a subsidy of approximately £7 million to Central Government each year.  The Government had calculated that it would cost approximately £89 million for Harrow to exit this subsidy system, for which funding by way of a loan would need to be sought;

·                    it was anticipated that the HRA would have between £2 and £4 million additional funds to spend each year compared with the existing subsidy system;

·                    the Public Works Loans Board (PWLB) had published preferential rates for Local Authorities seeking borrowing to finance the settlement payment.  A discount of 0.85% per annum on standard rates was now available to the Council.  This discount, combined with already low interest rates resulted in an attractive borrowing option;

·                    the length of borrowing agreements on offer ranged from 10 to 50 years.  An agreement of 50 years was preferred having considered the Council’s  requirement for borrowing, the ability within the HRA to repay the loan over a shorter term, and the potentially higher cost of refinancing at the end of the loan period;

·                    if the HRA borrowing was maintained in a single pool of borrowing combined with the Council’s General Fund, it would provide flexibility for both the Council and the HRA.  This flexibility would allow the HRA to repay its debt within the 50 year term of the loan if it were in a position to do so;

·                    the Government had introduced a debt cap nationally.  By borrowing £89 million, the HRA would reach the debt cap implemented by Government preventing further borrowing.  Creative use of the General Fund, which was not at its Capital limit, meant that extra borrowing could be possible to help the Borough’s need for new affordable housing.

In response to questions, officers advised that:

·                    the subsidy payable to Central Government had been steadily increasing on an annual basis as part of the annual subsidy calculation;

·                    the discount of 0.85% offered by PWLB would only be applicable to the loan of £89 million and not the Council’s total debt.  If the Council were to borrow from the PWLB for 50 years, a contract would be set at an agreed rate of interest for the duration of the loan;

·                    on the basis of a 50 year agreement, it was anticipated that the Council would be  ...  view the full minutes text for item 95.

Joint report of the Interim Director of Finance and the Corporate Director of Adults and Housing.

In accordance with the Local Government (Access to Information) Act 1985, the following item was admitted late to the meeting.  The Forum was requested to consider this item as a matter of urgency in the interest of providing Members and Tenant and Resident Association Representatives with the most up to date information relating to Housing Reform and Housing Revenue Account (HRA) Budget Setting 2012-13 and Medium Term financial Strategy (MTFS) to 2014-15, and the Council’s Rental Strategy and rent proposals from 1 April 2012.

An officer circulated a report at the meeting which provided the Forum with the Council’s latest position on the Council’s Rental Strategy.  The Forum were advised that:

·                    the Council’s rental strategy was approved in March 2011 based on the National rent policy which was calculated by adding Retail Price Index (RPI) plus 0.5% real growth and £2.00 to get to convergence;

·                    as the RPI at September 2011 was higher than anticipated at 5.6%, maintaining this policy meant that the average rent would increase by 6.74%, an average increase by £6.45 to £102.15 per week.  Although this was an increase in rental charges, it remained lower than many London Boroughs;

·                    Average Service Charges would increase by 15pence per week to £2.68;

·                    garage and parking charges would increase by 2% pending the review of the garage strategy.  The Forum expressed concern that the Council’s garage stock was underutilised, and that an increase would exacerbate the issue.  Having considered these views, it was agreed to propose a freeze on Garage charges pending finalisation of the strategy;

·                    it was recommended that Facility Charges increase by 4% to contribute to anticipated cost increases in 2012/13 and move towards full cost recovery;

·                    a 2% increase was shown in relation to water charges, however the final charge would depend on the notification from the water supplier, Veolia Water which was awaited;

·                    an increase of 2% was assumed in relation to Community Centres.

In response to questions, officers advised that:

·                    consideration had been given to approximately 70% of tenants in Harrow claiming full or partial benefits.  The self-financing agreement would provide additional funds to Resident Services to help mitigate the impact of wider housing reforms;

·                    the Service Charging model was being investigated to ensure that those being charged received the benefits of the service;

·                    a review of Central Recharges had been undertaken.  Robust calculations were applied when charging for support services.  The possibility of residents assisting to review services and scrutinise costs was being explored.

RESOLVED:  That the report be noted and that the comments made by the Forum be incorporated into the report on the Budget to be submitted to Cabinet on 9 February 2012.