An updated report was tabled.

DECISION

1.    To note that, under section 21 of the Welfare Reform and Work Bill (which is at Committee Stage in the House of Lords), the Authority must implement a rent reduction of 1% for each of the next four years, starting in 2016/17, and consequently to agree an average weekly rent reduction of 1% to take effect from the first rent week of April 2016.

2.    To agree that the element of the rental charge that relates to communal electricity will be removed from the rent (de-pooled) and will be added to the tenanted service charge. 

3.    To agree that the average weekly tenanted service charge will increase by £0.10 from the first rent week in April 2016, after applying the de-pooling adjustment of communal energy charges referred to in Recommendation 2.

4.    To note the risks to the Housing Revenue Account, (HRA) detailed in sections 6 to 8, and note that an updated medium-term financial strategy will be developed for the HRA in response to the various government policies that will have a substantial impact on the HRA.

5.    To note that the HRA budget will be presented to Cabinet in February 2016.

Action by:

CORPORATE DIRECTOR, DEVELOPMENT AND RENEWAL (A. DALVI)

(Service Head, Resources D&R (C. Holme)

(Finance Manager D&R (P. Leeson)

(Senior Accountant D&R (K. Ball)

Councillor Rachel Blake, Cabinet Member for Strategic Development, introduced the report and tabled an updated version. She highlighted that the main recommendation was a government mandated 1% cut to rent charges. The risks relating to this cut were set out and would inform the Housing Revenue Account budget report that was due at the next meeting.

In response to Pre-Scrutiny Questions it was explained that officers were awaiting directions from government on how the ‘pay to stay’ process would work.

The Mayor noted the challenge that the 1% cut was going to be for housing providers and agreed the recommendations as set out in the report.

RESOLVED

1.    To note that, under section 21 of the Welfare Reform and Work Bill (which is at Committee Stage in the House of Lords), the Authority must implement a rent reduction of 1% for each of the next four years, starting in 2016/17, and consequently to agree an average weekly rent reduction of 1% to take effect from the first rent week of April 2016.

2.    To agree that the element of the rental charge that relates to communal electricity will be removed from the rent (de-pooled) and will be added to the tenanted service charge. 

3.    To agree that the average weekly tenanted service charge will increase by £0.10 from the first rent week in April 2016, after applying the de-pooling adjustment of communal energy charges referred to in Recommendation 2.

4.    To note the risks to the Housing Revenue Account, (HRA) detailed in sections 6 to 8, and note that an updated medium-term financial strategy will be developed for the HRA in response to the various government policies that will have a substantial impact on the HRA.

5.    To note that the HRA budget will be presented to Cabinet in February 2016.