DECISION

     Revenue

1.            To approve the draft 2014/15 Housing Revenue Account budget as set out in Appendix 1.

2.            To approve the draft 2014/15 Management Fee payable to Tower Hamlets Homes (THH) of £33.633 million as set out in Table 2 in section 7.16.

3.            Subject to 2 above, to note that under the Management Agreement between the Council and THH, THH will manage delegated income budgets of £88.034 million and delegated expenditure budgets of £24.381 million on behalf of the Council in 2014/15.

4.            To note that, as referred to in paragraph 7.9, a sum of £0.205 million is being held within the HRA to provide for an assumed 1% pay award for 2014/15, and agree that the Management Fee will be adjusted – if necessary - to reflect the pay award when it is finalised.

5.            To note that, as detailed in paragraph 7.10, a sum of £1.3 million is being held within the HRA to provide for a possible increase in Employer Pension contributions in 2014/15, and agree that the Management Fee will be adjusted – if necessary - to reflect this increase as and when it is finalised.

6.            To note the HRA Medium Term Financial Plan (2014-17) outlined in Appendix 2.

                 Capital

7.            To adopt a capital estimate of £6.7 million in relation to Mechanical and Electrical schemes, as outlined in paragraph 9.7 and Table 4.

8.            To adopt a capital estimate of £3.5 million in relation to external works on non- Decent Homes blocks, as outlined in paragraphs 9.8 and 9.9.

9.            To adopt a capital estimate of £1 million to fund Overcrowding Reduction Initiatives as outlined in paragraph 9.10.

10.         To adopt capital estimates for the Aids and Adaptations programme (£750,000), the Capitalisation of Voids (£1.5 million) and the Capitalisation of Fees and Salaries (£650,000) as outlined in paragraph 9.11.

11.         To adopt a capital estimate of £250,000 in order to maintain a contingency for urgent works of £1 million, as outlined in paragraph 9.12.

12.         To adopt a capital estimate of £3.610 million in respect of the Extensions element of the GLA Pipeline scheme, and note that the Council will receive £1.020 million of GLA funding for this scheme (paragraphs 9.15 to 9.18).

13.         To adopt a capital estimate of £995,000 for the award of Disabled Facilities Grants, as outlined in paragraph 10.1, subject to funding being confirmed from within the Department of Health Personal Social Services capital grant. 

14.         To adopt a capital estimate of £550,000 in respect of Private Sector Improvement Grants, including Empty Property Grants, for 2014/15, to be financed from ring-fenced resources received from the East London Renewal Partnership (paragraph 10.2).

Action by:

CORPORATE DIRECTOR, DEVELOPMENT AND RENEWAL (A. DALVI)

(Senior Accountant (HRA) (K. Ball)

(Finance Manager (P. Leeson)

Councillor Rabina Khan, Cabinet Member for Housing, introduced the report. She highlighted that the cost of providing the service had been reduced by 4.5% and that the Council would continue to examine ways to reduce costs.

The Mayor agreed the recommendations as set out in the report.

RESOLVED

     Revenue

1.            To approve the draft 2014/15 Housing Revenue Account budget as set out in Appendix 1.

2.            To approve the draft 2014/15 Management Fee payable to Tower Hamlets Homes (THH) of £33.633 million as set out in Table 2 in section 7.16.

3.            Subject to 2 above, to note that under the Management Agreement between the Council and THH, THH will manage delegated income budgets of £88.034 million and delegated expenditure budgets of £24.381 million on behalf of the Council in 2014/15.

4.            To note that, as referred to in paragraph 7.9, a sum of £0.205 million is being held within the HRA to provide for an assumed 1% pay award for 2014/15, and agree that the Management Fee will be adjusted – if necessary - to reflect the pay award when it is finalised.

5.            To note that, as detailed in paragraph 7.10, a sum of £1.3 million is being held within the HRA to provide for a possible increase in Employer Pension contributions in 2014/15, and agree that the Management Fee will be adjusted – if necessary - to reflect this increase as and when it is finalised.

6.            To note the HRA Medium Term Financial Plan (2014-17) outlined in Appendix 2.

                 Capital

7.            To adopt a capital estimate of £6.7 million in relation to Mechanical and Electrical schemes, as outlined in paragraph 9.7 and Table 4.

8.            To adopt a capital estimate of £3.5 million in relation to external works on non- Decent Homes blocks, as outlined in paragraphs 9.8 and 9.9.

9.            To adopt a capital estimate of £1 million to fund Overcrowding Reduction Initiatives as outlined in paragraph 9.10.

10.         To adopt capital estimates for the Aids and Adaptations programme (£750,000), the Capitalisation of Voids (£1.5 million) and the Capitalisation of Fees and Salaries (£650,000) as outlined in paragraph 9.11.

11.         To adopt a capital estimate of £250,000 in order to maintain a contingency for urgent works of £1 million, as outlined in paragraph 9.12.

12.         To adopt a capital estimate of £3.610 million in respect of the Extensions element of the GLA Pipeline scheme, and note that the Council will receive £1.020 million of GLA funding for this scheme (paragraphs 9.15 to 9.18).

13.         To adopt a capital estimate of £995,000 for the award of Disabled Facilities Grants, as outlined in paragraph 10.1, subject to funding being confirmed from within the Department of Health Personal Social Services capital grant. 

14.         To adopt a capital estimate of £550,000 in respect of Private Sector Improvement Grants, including Empty Property Grants, for 2014/15, to be financed from ring-fenced resources received from the East London Renewal Partnership (paragraph 10.2).