Agenda item

5.1

The report provided the 2023-24 update of the Housing Revenue Account (HRA) Business Plan, including revised priorities and capital improvement plans for 2023-24. The report also set out the 2023-24 Housing Revenue Account (HRA) revenue budget and revenue contribution to capital for the Council housing stock in Sheffield.

5.2

RESOLVED UNANIMOUSLY: That the Strategy and Resources Policy Committee approves for submission to the meeting of the City Council on 20 February 2023:-

(1)

the HRA Business Plan report for 2023-24, as set out in the Financial Appendix to the report;

(2)

the HRA Revenue Budget 2023-24, as set out in the Financial Appendix to the report;

(3)

rent increases for council dwellings by 7% from April 2023, in line with the Regulator of Social Housing’s Rent Standard;

(4)

rent increases for temporary accommodation by 7% for 2023-24;

(5)

garage rent increases for garage plots and garage sites by 7% from April 2023;

(6)

the sheltered housing charge increase by 7% for 2023-24;

(7)

the burglar alarm charge increase by 7% for 2023-24;

(8)

the furnished accommodation charge increase by 7% for 2023-24;

(9)

the Hardship Fund increase by a further £300,000 for 2023/24, to £450,000; and

(10)

no increase to the community heating charge at this time.

5.3

Reasons for Decision

5.3.1

This report and its recommendations, set out the scale of the challenge ahead, the limited resources available and the difficult decisions that now need to be taken to deliver a balanced HRA budget for 2023-24. The delivery of a balanced HRA budget is dependent on setting a 7% rent increase for Council tenants as set out in this report. The proposed recommendations:

•        optimise the number of good quality affordable council homes in the city

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

•        ensure that tenants’ homes continue to be well maintained and to optimise investment in estates; and

•    assure the long-term sustainability of council housing in Sheffield.

5.4

Alternatives Considered and Rejected

5.4.1

No other options were considered. The Council is required to both set a balanced HRA budget and to ensure that in-year income and expenditure are balanced.

5.1

The Executive Director, Operational Services, submitted a report providing the 2023-24 update of the Housing Revenue Account (HRA) Business Plan, including revised priorities and capital improvement plans for 2023-24, and the 2023-24 HRA revenue budget and revenue contribution to capital for the Council housing stock in Sheffield.

5.2

The HRA Business Plan for 2023-24 had been considered at the meeting of the Housing Policy Committee on 2^nd February 2023 and that Committee had identified four matters which it had requested be considered by the Strategy and Resources Policy Committee when it makes its recommendations to the full Council in relation to the approval of the Housing Revenue Account. Those four matters were – (1) maintaining the Stock Increase Programme (SIP); (2) looking again at how to invest in order to decrease the repairs bill; (3) looking at the possibility of further investment into retro-fitting; and (4) increasing tenant involvement, exploring the option of tenant-led local housing advisory panels and reporting arrangements with LACs. 

5.3

Members of the Strategy and Resources Policy Committee asked questions of the Director of Housing in relation to the HRA Business Plan and Budget, including in relation to the matters identified by the Housing Policy Committee. The Committee made no decisions in respect of those matters but during the debate it was noted that amendments may be submitted for consideration by Full Council in relation to the HRA Business Plan and Budget which may make proposals concerning those matters.

5.4

RESOLVED UNANIMOUSLY: That the Strategy and Resources Policy Committee approves for submission to the meeting of the City Council on 20 February 2023:-

(1)

the HRA Business Plan report for 2023-24, as set out in the Financial Appendix to the report;

(2)

the HRA Revenue Budget 2023-24, as set out in the Financial Appendix to the report;

(3)

rent increases for council dwellings by 7% from April 2023, in line with the Regulator of Social Housing’s Rent Standard;

(4)

rent increases for temporary accommodation by 7% for 2023-24;

(5)

garage rent increases for garage plots and garage sites by 7% from April 2023;

(6)

the sheltered housing charge increase by 7% for 2023-24;

(7)

the burglar alarm charge increase by 7% for 2023-24;

(8)

the furnished accommodation charge increase by 7% for 2023-24;

(9)

the Hardship Fund increase by a further £300,000 for 2023/24, to £450,000; and

(10)

no increase to the community heating charge at this time.

5.5

Reasons for Decision

5.5.1

This report and its recommendations, set out the scale of the challenge ahead, the limited resources available and the difficult decisions that now need to be taken to deliver a balanced HRA budget for 2023/24. The delivery of a balanced HRA budget is dependent on setting a 7% rent increase for Council tenants as set out in this report. The proposed recommendations:

•        optimise the number of good quality affordable council homes in the city

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

•        ensure that tenants’ homes continue to be well maintained and to optimise investment in estates; and

•    assure the long-term sustainability of council housing in Sheffield.

5.6

Alternatives Considered and Rejected

5.6.1

No other options were considered. The Council is required to both set a balanced HRA budget and to ensure that in-year income and expenditure are balanced.