LONDON BOROUGH OF TOWER HAMLETS
			HOUSING REVENUE ACCOUNT				Appendix D
			MEDIUM-TERM FINANCIAL STRATEGY  - 2011/12 TO 2014/15
	20010/11			2011/12	2012/13	2013/14	2014/15
	Actual		HEADING	Budget	Budget	Budget	Budget
	£'000			£'000	£'000	£'000	£'000
			HRA Income
	(91,680)		Base Budget - previous year	(90,655)	(90,649)	(81,557)	(86,053)
			Inflation	(3,240)	(4,312)	(4,495)	(4,750)
			HRA Expenditure
	91,872		Base Budget - previous year	90,328	90,984	82,410	86,472
			Inflation	1,184	4,106	4,315	4,565
	192		Initial Base HRA Budget	(2,383)	130	673	234
			Committed Growth
			Buildings for the Future	0	60	60	60
	192			(2,383)	190	733	294
			Approved Savings & Other Adjustments to Base Budget
			Reduced Income arising from Ocean/Blackwall regeneration schemes		689		4,237
			Reduced costs arising from Ocean/Blackwall regeneration schemes		(606)		(3,777)
			Transition to Self Financing - Loss of Subsidy	2,014	12,114
			Transition to Self Financing - reduced interest	298	(11,954)
			Reduced Interest on Balances		100
			Adjust shop rents budget - transfer to Ocean estate	400
			Reduction in Estate Parking income	545
			Impact of reducing cost base on leaseholder service charges	790	500
			Subsidy Adjustment in respect of Decent Homes Funding	(503)
			Reductions in the THH Management Fee	(3,030)
			Loss of Fee income on Capital Projects	1,500
			Reduction in ICT recharge to the HRA/Security Costs Ocean Estate	(50)	57
			Adjustment to net Water and NNDR budgets	670
			Miscellaneous fee income due	(310)
			Adjustment to concierge and estate parking contract prices	54
			Increased Dwelling Depreciation	111
			Increased Debt Management Costs	10
			Reduced Non Dwelling Depreciation	(283)
			Reduction in Premiums & Discounts	(47)	0	(254)	(103)
			Adjustment to Debt Management Expenses		(177)
			Adjustment to Item 8 interest arising from DH Funding	544
			Adjustment to Debt Management Expenses - DH Funding	5
			Contribution from Major Repairs Reserve	(335)	(335)	(335)	(335)
			Other adjustments	71	145	(589)	(438)
			Savings Required to maintain a Balanced  Budget	0	(578)	(144)	(316)
	192		Balanced Budget	0	(0)	(0)	(0)
			HRA Balances
	(12,978)		Balances at beginning of year	(12,786)	(12,786)	(12,786)	(12,786)
	(12,786)		Balances at end of year	(12,786)	(12,786)	(12,786)	(12,786)
			2012/13 Assumptions
			Assumes a rent increase of 6%, services charges and other income by 4%
			Assumes 5% increase on all other expenditure
			Assumes no additional borrowing in 2012/13 other than for Decent Homes
			Assumes no repayment of debt and a CRI of 4.95%
			2013/14 Assumptions
			Assumes a rent increase of 6%, services charges and other income by 4%
			Assumes 5% increase on all other expenditure
			Assumes no additional borrowing in 2013/14 and Decent Homes funded by grant
			Assumes no repayment of debt and a CRI of 4.95%
			Premiums and Discounts written down in accordance with proper practice
			No increase in the level of voids on Blackwall estate
			2014/15 Assumptions
			Assumes a rent increase of 6%, services charges and other income by 4%
			Assumes 5% increase on all other expenditure
			Assumes no additional borrowing in 2014/15 and Decent Homes funded by grant
			Assumes no repayment of debt and a CRI of 4.95%
			Premiums and Discounts written down in accordance with proper practice
			Loss of 706 properties in respect of the Blackwall and other Estates