Agenda item

“RESOLVED: That this Cabinet recommends to the meeting of the City

Council on 5th February, 2014 that :-

(a)

the HRA Business Plan update report for 2014/15 be approved;

(b)

the HRA Revenue Budget for 2014/15 as set out in Appendix B to the report be approved;

(c)

the rent increase for Council dwellings by an average of 6.2% from April 2014 be approved;

(d)

the rents for Council dwellings being set at target rent, when re-let following vacancy, from April 2014 be approved;

(e)

the increase of annual rents for garages and garage sites by an average of 6.2% from April 2014 be approved;

(f)

the increase of community heating charges by 3% in 2014/15 be approved;

(g)

it notes that it may be necessary to amend the sheltered housing service charge, in the event of a review of the service, if the Supported Housing Subsidy changes as part of the Council’s wider budget setting process;

(h)

it resolves that charges for furnished accommodation and temporary accommodation are not increased;

(i)

it delegates authority to the Director of Commissioning, Communities to amend the burglar alarm charge in 2014/15 in line with the costs incurred under the new contract. Until the contract is in place and the charges are known the burglar alarm charge will remain unchanged; and

(j)

it delegates authority to the Director of Commissioning, Communities and the Director of Finance, in consultation with the Cabinet Member for Homes and Neighbourhoods to authorise prudential borrowing as allowed under current Government guidelines.”

Whereupon, it was moved by Councillor Penny Baker, seconded by Councillor Andrew Sangar, as an amendment, that the recommendations made by the Cabinet at its meeting held on 15th January 2014, concerning the Housing Revenue Account Business Plan Update, HRA Budget and Rent Increase 2014/15, be approved with the following comments and amendments:-

(a)       confirms that a rise in rents is a decision reserved for the Council and that any claim that the decision has been ‘forced’ by the Government is incorrect;

(b)       notes that the target rent policy, which was introduced by the last Government, is a guideline policy and that local authorities have been given more control over rent-setting since the move to self-financing of Housing Revenue Accounts;

(c)        believes that an excessive 6.2% rise in rents will be damaging to many Council tenants across Sheffield who are struggling with finances;

(d)       notes that Liberal Democrat-controlled Portsmouth City Council have previously agreed rises in rent below guideline levels and therefore confirms such a policy is possible;

(e)       regrets that members of the ruling group blocked discussion of this hike at last week’s Safer and Stronger Communities Scrutiny Committee meeting, thereby denying tenants the scrutiny they deserve;

(f)        believes the Administration are forcing through this hike without scrutiny because they think they can get away with blaming someone else;

(g)       understands that the hike in rents could be halved if an annual revenue saving of £3.3 million can be identified;

(h)       furthermore, confirms that above guideline rises in future years could return Sheffield rents to target rent values;

(i)         therefore, recommends that the following savings are investigated in order to halve the proposed hike in council rents and accordingly, a rent increase for Council dwellings of 3.1% (not 6.2%) from April 2014 be approved:-

(i)         10% reduction in senior managers and back office teams equating to roughly £923,000;

(ii)        15% reduction in office costs and overheads equating to roughly £635,000;

(iii)       10% reduction in area teams equating to roughly £1,216,000;

(iv)       10% reduction in estate officers and environmental services equating to roughly £402,000; and

(v)        6% reduction in other costs coming from Going Local funds equating to roughly £115,000; and

(j)         notes the advice of the Section 151 officer that these saving targets could be achieved within the 2014-15 financial year, but recognises that if savings cannot be realised, a reduction will need to be made to the transfer to capital reserves, accepting the possible implications for future investment.

On being put to the vote, the amendment was negatived.

The votes on the amendment were ordered to be recorded and were as follows:

For Paragraphs (a), (b), (c) and (e)  (20)

-

Councillors Simon Clement-Jones, Shaffaq Mohammed, Robert Murphy, Jillian Creasy, Rob Frost, Colin Ross, Joe Otten, Penny Baker, Diana Stimely, Roger Davison, Sue Alston, Andrew Sangar, Cliff Woodcraft, Denise Reaney, Ian Auckland, Bob McCann, Anders Hanson, Katie Condliffe, David Baker and Trevor Bagshaw.

Against Paragraphs (a), (b), (c) and (e)  (55)

-

Councillors Julie Dore, Jack Scott, Roy Munn, Clive Skelton, Ian Saunders, Chris Rosling-Josephs, Helen Mirfin-Boukouris, Bryan Lodge, Denise Fox, Karen McGowan, Jayne Dunn, Stuart Wattam, Jackie Drayton, Ibrar Hussain, Talib Hussain, Mohammed Maroof, Geoff Smith, Mary Lea, Harry Harpham, Mazher Iqbal, Joyce Wright, Steven Wilson, Garry Weatherall, Sheila Constance, Chris Weldon, Alan Law, Steve Jones, Tim Rippon, Cate McDonald, George Lindars-Hammond, Janet Bragg, Pat Midgley, Jenny Armstrong, Terry Fox, Anthony Downing, David Barker, Isobel Bowler, Nikki Bond, Qurban Hussain, Lynn Rooney, John Campbell, Martin Lawton, Sioned-Mair Richards, Peter Price, Tony Damms, Gill Furniss, Richard Crowther, Philip Wood, Neale Gibson, Ben Curran, Adam Hurst, Alf Meade, Jackie Satur, Mick Rooney and Ray Satur.

Abstained on Paragraphs (a), (b), (c) and (e)  (1)

-

The Deputy Lord Mayor (Cllr Peter Rippon).

For Paragraphs (d), (f), (g), (h) ,(i) and (j) (18)

Councillors Simon Clement-Jones, Shaffaq Mohammed, Rob Frost, Colin Ross, Joe Otten, Penny Baker, Diana Stimely, Roger Davison, Sue Alston, Andrew Sangar, Cliff Woodcraft, Denise Reaney, Ian Auckland, Bob McCann, Anders Hanson, Katie Condliffe, David Baker and Trevor Bagshaw.

Against Paragraphs (d), (f), (g), (h) ,(i) and (j)  (55)

Councillors Julie Dore, Jack Scott, Roy Munn, Clive Skelton, Ian Saunders, Chris Rosling-Josephs, Helen Mirfin-Boukouris, Bryan Lodge, Denise Fox, Karen McGowan, Jayne Dunn, Stuart Wattam, Jackie Drayton, Ibrar Hussain, Talib Hussain, Mohammed Maroof, Geoff Smith, Mary Lea, Harry Harpham, Mazher Iqbal, Joyce Wright, Steven Wilson, Garry Weatherall, Sheila Constance, Chris Weldon, Alan Law, Steve Jones, Tim Rippon, Cate McDonald, George Lindars-Hammond, Janet Bragg, Pat Midgley, Jenny Armstrong, Terry Fox, Anthony Downing, David Barker, Isobel Bowler, Nikki Bond, Qurban Hussain, Lynn Rooney, John Campbell, Martin Lawton, Sioned-Mair Richards, Peter Price, Tony Damms, Gill Furniss, Richard Crowther, Philip Wood, Neale Gibson, Ben Curran, Adam Hurst, Alf Meade, Jackie Satur, Mick Rooney and Ray Satur.

Abstained on Paragraphs (d), (f), (g), (h) ,(i) and (j) (3)

The Deputy Lord Mayor (Cllr Peter Rippon) and Councillors Robert Murphy and Jillian Creasy.

After a Right of Reply from Councillor Harry Harpham, the original Motion was put to the vote and carried, as follows:

RESOLVED: That, as recommended by the Cabinet at its meeting held on 15^th January, 2014:-

(a)       the HRA Business Plan update report for 2014/15 be approved;

(b)       the HRA Revenue Budget for 2014/15 as set out in Appendix B to the report be approved;

(c)        the rent increase for Council dwellings by an average of 6.2% from April 2014 be approved;

(d)       the rents for Council dwellings being set at target rent, when re-let following vacancy, from April 2014 be approved;

(e)       the increase of annual rents for garages and garage sites by an average of 6.2% from April 2014 be approved;

(f)        the increase of community heating charges by 3% in 2014/15 be approved;

(g)       it be noted that it may be necessary to amend the sheltered housing service charge, in the event of a review of the service, if the Supported Housing Subsidy changes as part of the Council’s wider budget setting process;

(h)       charges for furnished accommodation and temporary accommodation be not increased;

(i)         authority be given to the Director of Commissioning, Communities to amend the burglar alarm charge in 2014/15 in line with the costs incurred under the new contract, and until the contract is in place and the charges are known, the burglar alarm charge will remain unchanged; and

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

(Note: The Deputy Lord Mayor (Councillor Peter Rippon) took the Chair from the beginning of this item of business until the close of the meeting, the Lord Mayor (Councillor Vickie Priestley) having left the meeting.)