Agenda item

9.1

The Executive Directors of Communities, Place and Resources, submitted a joint report which provided the 2013/14 update to the Housing Revenue Account (HRA) Business Plan 2012-17.

9.2

RESOLVED: That this Cabinet recommends to the meeting of the City Council on 6^th February, 2013 that :-

(a)

the HRA Business Plan update report for 2013/14 be approved;

(b)

the HRA Revenue Budget for 2013/14 as set out in Appendix B of the Cabinet report be approved ;

(c)

an increase in rents for Council dwellings by an average of 4.8% from April 2013 be approved;

(d)

an increase in annual rents for garages and garage sites by an average of 4.8% from April 2013 be approved;

(e)

an increase in community heating charges by 5% in 2013/14 be approved;

(f)

the Director of Commissioning, Communities, in consultation with the Cabinet Member for Homes and Neighbourhoods, be granted delegated authority to increase the sheltered housing service charge in the event of the City Wide Care Alarms charge being increased in 2013/14;

(g)

charges for furnished accommodation, interim accommodation, and burglar alarms be not increased ; and

(h)

the Director of Commissioning, Communities and the Director of Finance, in consultation with the Cabinet Member for Homes and Neighbourhoods, be granted delegated authority to authorise prudential borrowing as allowed under current government guidelines.

9.3

Reasons for Decision

9.3.1

To maximise the financial resources to deliver outcomes on key services in the context of the new national council housing finance regime.

9.3.2

To contribute to making neighbourhoods a great place to live by ensuring continued investment into Sheffield’s council housing.

9.3.3

To continue to plan for the long term sustainability of services whilst taking every opportunity to introduce service improvements.

9.4

Alternatives Considered and Rejected

9.4.1

To increase rents for Council dwellings by less than the government formula – The self financing settlement from Government assumed the Council’s rent increases are in line with the Government formula. If the Council does not increase rents by this amount this would mean pound for pound savings would need to be found to offset the income shortfall. We would then have to live within this reduced resource envelop for every subsequent year or until the council raised rents by above guideline.

9.4.2

Not to undertake a council housing new build programme - the change to the Government’s Right to Buy policy means that if the council is to retain any additional receipts raised by the increased sales discounts now available to tenants, the receipt must be used as a contribution to new affordable housing. The alternative of using these receipts for a new build programme would be to pass the receipts to another registered provider such as a housing association who could then provide the affordable housing. However this would be unlikely to result in homes at social rent.

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

Richard Webb, Executive Director, Communities

Simon Green, Executive Director, Place

Laraine Manley, Executive Director, Resources

(NOTE:1.This item is referred for approval by the City Council and cannot, therefore, be called in for scrutiny; and

2. The report on the Housing Revenue Account will be circulated to all Council Members)