Agenda item

Report of the Director of Finance

Cabinet was advised that, in addition to the specific recommendations in the report, it was also being asked to recommend the 2019-20 Housing Revenue Account (HRA) Budget and the HRA capital programme for approval by full Council.

Resolved to RECOMMEND:  (to Council)

That

(1)       the Housing Revenue Account (HRA) Budget for 2019-20 be approved;

(2)       the Housing Revenue Account (HRA) Capital Programme, as detailed in appendix 7 to the report, be approved.

[Call-in does not apply to the decisions above as they are reserved to full Council.]

RESOLVED: That the following be approved -

(1)          the proposed average rent for non-sheltered accommodation of £113.09 per week for 2019-20 be approved, representing a decrease of 1% in average rent from the 2018-19 figure and for fifty three rent weeks to be charged in financial year 2019-20;

(2)          the proposed average rent for sheltered accommodation of £93.66per week for 2019-20 be approved, representing a decrease of 1% in average rent from the 2018-19 figure and for fifty three rent weeks to be charged in financial year 2019-20;

(3)          an average tenant service charge of £3.22 per week be approved, an increase of 2.4% in line with CPI as detailed in appendix 2.  Should review of tenant service charges support a further increase with appropriate consultation, approval from Cabinet will be sought for an in year increase;

(4)          a proposed average rent for new build units at affordable rent of £197.29 be approved, reflecting the statutory 1% rent reduction and non-grant funding and for fifty three rent weeks to be charged in financial year 2019-20;

(5)          proposed average rent for shared ownership units of £150.03 per week be approved, reflecting 75% equity share held by Council following approval by Cabinet 6 December 2018 of the Shared Ownership Allocation and Affordability Policy;

(6)          proposed increases in Facility charges and Community Halls of 3% and 4% respectively (appendices 4 and 6) be approved, and charges for Garages and Water (appendices 3 and 5) remain unchanged be noted;

(7)          policy of repayment of HRA debt on new RTB disposals using a proportion of right to buy receipts as part of a policy to reduce interest exposure on the revenue account with due regard to borrowing requirements for new build be approved;

(8)          an increase in the planned investment programme of £8m over five years based on latest stock condition survey in line with affordability testing in the HRA Business Plan be approved;

(9)          an increase in Home-4-Harrow programme of £123.7m be approved for provision of 659 additional homes in accordance with Government’s stated objective to provide 10,000 new Council homes in the capital by 2030, comprising £25.8m for Grange Farm phases 1 & 2; £2.8m for Infill phase 2; £7.7m Gayton Road and £87.4m other schemes;

(10)       phased increase in borrowing of up to £83.6m be approved to complete existing, and start new schemes for provision of new housing supply; additional borrowing to be raised in separate HRA loans pool and subject to ongoing affordability testing through Business Planning process as set out in the risks & mitigations section of this report;

(11)       set up of earmarked reserves assuming adequate resources becoming available to mitigate the risks identified in construction of budget and MTFS be approved.

Reason for Recommendation:  To recommend the HRA budget and capital programme for 2019-20 and the MTFS for 2020-21 to 2021?22, increases in capital programme and increase in borrowing required to support new housing supply.

Alternative Options Considered and Rejected:  As set out in the report.

Conflict of Interest relating to the matter declared by Cabinet Member/Dispensation Granted:  None.