Decision details

9.1

The Executive Directors, Communities and Place and Interim Executive Director, Resources submitted a joint report providing the 2016/17 update of the Housing Revenue Account (HRA) Business Plan including a number of proposals.

9.2

RESOLVED: That Cabinet recommends to the meeting of the City Council on 3 February 2016 that:-

(a)

the HRA Business Plan report for 2016/17 as set out in Appendix A of the report is approved;

(b)

the HRA Revenue Budget for 2016/17 as set out in Appendix B of the report is approved;

(c)

rents for Council dwellings, including Temporary Accommodation, are reduced by 1% from April 2016 in line with the requirements of the anticipated Welfare Reform and Work Act 2016;

(d)

rents for garages and garage sites remain frozen at 2015/16 levels and not increased from April 2016;

(e)

community heating charges are not increased from April 2016;

(f)

authority be delegated to the Director of Housing and Neighbourhoods to amend the burglar alarm charge in 2016/17 in line with the costs incurred under the new contract, and that until the contract is in place and the charges are known, the burglar alarm charge remains unchanged;

(g)

the Sheltered Housing service  charge which was amended in November 2015 is not increased from April 2016;

(h)

charges for furnished accommodation are not increased from April 2016;

(i)

authority be delegated to the Director of Housing and Neighbourhoods and Director of Finance, in consultation with the Cabinet Member for Housing to authorise prudential borrowing as allowed under current Government guidelines; and

(j)

authority be delegated to the Director of Housing and Neighbourhoods and Director of Finance, in consultation with the Director of Legal and Governance and the Cabinet Member for Housing, to amend rent levels for 2016/17 in the event that the statutory requirements at the relevant time are different to those anticipated.

9.3

Reasons for Decision

9.3.1

To optimise the number of good quality affordable Council Homes in the City.

9.3.2

To maximise the financial resources to deliver key outcomes for tenants and the City in the context of a self-financing funding regime.

9.3.3

To ensure that tenants’ homes continue to be well maintained and to optimise investment in estates.

9.3.4

To assure the long term sustainability of council housing in Sheffield.

9.4

Alternatives Considered and Rejected

9.4.1

Delays to some parts of the investment programme have been required this year to address the cash flow issue created by the rent reductions in parallel with the Government debt cap. These delays could be achieved by reducing the stock increase programme. However at a time when social housing numbers are set to reduce ever faster as a result of newly announced Government policy (extension of the Right to Buy to Housing Association tenants, sale of Vacant High Value Local Authority Housing and Pay to Stay) the funding of the stock increase programme is considered to be a high priority.

9.4.2

A range of savings options have been identified in order to bring expenditure down in line with the revised rental income forecasts following the rent reductions announced by Government this summer. These have been consulted on and are recommended for implementation in this report. Further savings will be needed and options will be developed in the coming months and brought forward for consultation.

9.5

Any Interest Declared or Dispensation Granted

None

9.6

Reason for Exemption if Public/Press Excluded During Consideration

None

9.7

Respective Director Responsible for Implementation

Laraine Manley, Simon Green, and Eugene Walker, Executive Directors, Communities and Place and Interim Executive Director, Resources

9.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

N/A

(Note: This is subject to approval at Full Council at its meeting to be held on 3 February 2016 and is not subject to call-in).