DECISION      

Revenue

1.    To approve the draft 2016/17 Housing Revenue Account budget as set out in Appendix 1.

2.    To approve the draft 2016/17 Management Fee payable to Tower Hamlets Homes (THH) of £33.376 million as set out in Table 7 in section 10.

3.    To note that under the Management Agreement between the Council and THH, THH manages delegated income and expenditure budgets on behalf of the Council.  The principal delegated income budgets are for rental income and service charges, and the major item of delegated expenditure is repairs and maintenance.  In 2016/17, THH will manage delegated income budgets totalling £88.512 million, and delegated expenditure budgets of £24.208 million.

4.    To note the HRA Medium Term Financial Plan (2016/17 to 2020/21) outlined in Appendix 2.

            Capital

1.    To adopt a capital estimate of £2 million in relation to external works on priority blocks, as outlined in paragraph 13.3.

2.    To adopt a capital estimate of £11.5 million to fund newly arising Decent Homes works as outlined in paragraphs 13.4.

3.    To adopt a capital estimate of £3.6 million in relation to Mechanical and Electrical schemes Initiatives as outlined in paragraph 13.5.

4.    To adopt a capital estimate of £4 million in relation to Fire Risk Assessment as outlined in paragraphs 13.6.

5.    To adopt a capital estimate of £1 million to fund Overcrowding Reduction Initiatives as outlined in paragraph 13.7.

6.    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 13.8.

7.    To adopt a capital estimate of £200,000 in order to maintain a contingency for urgent works of £1 million, as outlined in paragraph 13.9.

Action by:

CORPORATE DIRECTOR, DEVELOPMENT AND RENEWAL (A. DALVI)

(Service Head, Resources (C. Holme)

(Finance Business Partner (P. Leeson)

(Senior Accountant (HRA and Capital) (K. Ball)

Councillor David Edgar, Cabinet Member for Resources, introduced the report. He highlighted the government requirement for a 1% rent decrease and the financial impact that would have on the account with a projected £24 million reduction in income over the next four years.

He also highlighted details on the capital programme and how to help residents make adaptions to their homes to support independent living.

Members welcomed the report and discussed a number of issues including ensuring all accommodation was of decent homes standard and looking at the new build programme.

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

RESOLVED

Revenue

1.    To approve the draft 2016/17 Housing Revenue Account budget as set out in Appendix 1.

2.    To approve the draft 2016/17 Management Fee payable to Tower Hamlets Homes (THH) of £33.376 million as set out in Table 7 in section 10.

3.    To note that under the Management Agreement between the Council and THH, THH manages delegated income and expenditure budgets on behalf of the Council.  The principal delegated income budgets are for rental income and service charges, and the major item of delegated expenditure is repairs and maintenance.  In 2016/17, THH will manage delegated income budgets totalling £88.512 million, and delegated expenditure budgets of £24.208 million.

4.    To note the HRA Medium Term Financial Plan (2016/17 to 2020/21) outlined in Appendix 2.

            Capital

1.    To adopt a capital estimate of £2 million in relation to external works on priority blocks, as outlined in paragraph 13.3.

2.    To adopt a capital estimate of £11.5 million to fund newly arising Decent Homes works as outlined in paragraphs 13.4.

3.    To adopt a capital estimate of £3.6 million in relation to Mechanical and Electrical schemes Initiatives as outlined in paragraph 13.5.

4.    To adopt a capital estimate of £4 million in relation to Fire Risk Assessment as outlined in paragraphs 13.6.

5.    To adopt a capital estimate of £1 million to fund Overcrowding Reduction Initiatives as outlined in paragraph 13.7.

6.    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 13.8.

7.    To adopt a capital estimate of £200,000 in order to maintain a contingency for urgent works of £1 million, as outlined in paragraph 13.9.