Agenda item

12.1

The Executive Directors, Place, Communities and Resources submitted a joint report providing the 2015/16 update to the Housing Revenue Account (HRA) Business Plan.

12.2

In presenting the report, Liam Duggan, Manager, Social Housing Commissioning, referred to an omission from paragraph 7.4 of the report where Arbourthorne Fields phase 3a was missing from the list of schemes for which property rents were to be frozen in 2015/16. This should be included and the final paragraph should read ‘Should Arbourthorne Fields phase 3b be declared for demolition by the Director of Development and Regeneration Services before 6^th April 2015 this will also be held with no increase in 2015/16.’

12.3

RESOLVED: That Cabinet recommends to the meeting of the City Council on 4^th February 2015 that:-

(a)

the HRA Business Plan report for 2015/16 as set out in Appendix A to the report is approved;

(b)

the HRA Revenue Budget for 2015/16 as set out in Appendix B to the report is approved;

(c)

rents for Council dwellings are increased by 2.2% from April 2015;

(d)

rents for garages and garage sites are frozen at 2014/15 levels and not increased from April 2015;

(e)

Community Heating charges are not increased from April 2015;

(f)

the burglar alarm charge which is due to be amended during 2014/15 following a procurement is not increased from April 2015;

(g)

the Sheltered Housing service charge which is due to be amended during 2014/15 is not increased from April 2015;

(h)

charges for temporary accommodation and furnished accommodation are not increased;

(i)

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; and

(j)

the specific projects proposed in the report be brought forward for Member approval in accordance with the Council’s Capital Approval process as business cases are developed.

12.4

Reasons for Decision

12.4.1

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

12.4.2

To make neighbourhoods safer, more attractive places to live through continued investment in Sheffield’s Council housing and estates.

12.4.3

To enable tenants to live independently and well in their own home by providing the support they need when they need it.

12.4.4

To help tenants deal with a challenging economic climate and remain warm in their homes by ensuring energy bills are as low as possible.

12.4.5

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

12.4.6

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

12.5

Alternatives Considered and Rejected

12.5.1

To increase rents for Council dwellings by less than the Government guidance

The Government’s self-financing debt settlement of 2012 was made in view of its expectation that each Local Authority would set rents in line with Government guidance. To raise rents by less than the guidance amount would detrimentally impact on the ability of the HRA to carry this debt whilst providing Government recommended funding to services and investment.

12.5.2

Not to prioritise the funding of Photovoltaic Panels

The option of delivering photovoltaic panels, which bring high levels of investment into the City and financial benefit to thousands of tenants, is cost neutral to the HRA because of the lower costs associated with it being installed alongside the re-roofing works. Because of this the subsidy payments for PV are expected to cover the cost of the installation and maintenance and management over the long term. If other investment were prioritised ahead of PV at this time there would be no opportunity to bring PV investment forward in future, unlike the alternative options.

(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).