Council and democracy

Agenda item

HRA Business Plan and Budgets 2017/18

Minutes:

The Corporate Director of Adults, Housing and Health introduced the report and in doing, so advised Members the Housing Revenue Account (HRA) had been redeveloped due to the government’s announcement of the 1% rent reduction and was to be presented to Cabinet on Wednesday 8 February 2017.

 

It was explained that Officers had also taken into account additional costs such as repairs and the 3 Capital Programmes and were now facing the decision on how to generate an income or charge for services.

 

The Head of Housing informed the Committee that following the last meeting where Members raised concerns on the suggested service charges and the announcement of the 1% reduction Officers had relooked at the HRA. He continued by explaining the Council were still awaiting the Housing Whitepaper, which was to be announced immanently.

 

Members were notified that following their concerns at the previous meeting, Officers had come to the conclusion to offer satisfactory services to tenants and invest into the HRA, to complete this the phased extension of service charges was thought to be the most appropriate means of generating the required additional revenue.

 

The Chair of the Committee commented he felt the consultation with residents was important, however the Sheltered Service Charge of £15 per week was unacceptable.  He continued by stating that people living in Sheltered Housing would rather complete certain tasks such as grass cutting themselves, than to have to pay for the services they received.

 

The Housing Tenant Representative agreed with the Chair stating that tenants did not want to pay for services that they did not receive. She further mentioned that she checked the lights, in her own complex and when informing the manager of lights which were not working, was informed to call the repair team herself. 

 

Members were advised by the Head of Housing that the Council was the landlord for sheltered housing residents, which meant repairs were up to the Council to complete.  He further mentioned in relation to a question about garages in the borough, that issues were to be picked up with the relevant service and he accepted that improvements were required.

 

It was discussed that the Council were commissioning a Stock Survey, following which they would be able to create a potential management plan with regards to garages.

 

The Corporate Director of Adults, Housing and Health mentioned that he had visited all but 3 Sheltered Housing Complexes in the Borough. He notified the Committee that 70% of sheltered housing tenants were on full or partial housing benefit and assured the Committee that all affected residents would be included within the consultation.

 

During discussions, Councillor Pothecary stated that she was against the Sheltered Service charges. She queried as to who the Council was charging for heating, as this was subject to a 3% increase.  It was explained that the 3% heating charge, came from the fees and charges policy.

 

Councillor Ojetola commented that he had concerns with Thurrock’s vulnerable residents paying additional costs, when living in sheltered housing.  The Head of Housing explained that the HRA budget was ring fenced and that the Council was currently charging some residents and not others for the services they were receiving.

 

The Corporate Director of Adults, Housing and Health advised that all

Local Authorities would be having the same conversations and looking at ways to contribute to the HRA budgets and so were also considering charging tenants for services offered.

 

It was queried as to whether the service charges would mean that an improved service would be offered to residents. Officers advised that the service charges would allow the Council to maintain the services currently provided.

 

Members were notified that all tenants affected would receive an advice letter, informing them of the consultation, which was to be undertaken via telephone, email or online.  The Head of Housing advised the consultation would start at the end of February and would finish at the end of March.

 

The Chair of Committee suggested a new recommendation which was seconded by Councillor C Baker:

 

The Housing Overview and Scrutiny Committee recommend that no new charge of £15 per week be introduced for sheltered housing tenants and that following the Council’s consultation, any such charge will apply to new tenants only.

 

Members voted on the suggested recommendation as follows:

 

For: Councillors G Rice, C Baker, J Baker, J Pothecary and J Redsell.

 

Against: Councillor T Ojetola.

 

The Corporate Director of Adults, Housing and Health explained that a report was to be presented at the February meeting of Cabinet, then the consultation would begin, after which a report would be presented to Cabinet in April for a final decision.

 

RESOLVED:

 

1.         That the assumptions included in the HRA Business Plan be noted.

 

2.         That the budgets for 2017/18 be noted.

 

3.         That the HRA New Build programme maximises the use of Right to Buy (RTB) Receipts in place of Homes and Communities Agency funding.

 

4.         That growth for revenue repairs and capital investment is noted.

 

5.         That a 3% increase to all existing tenant charges is noted in line with the Council’s increases to Fees and Charges.

 

6.         That tenants receiving certain housing management services be consulted on the phased introduction of service charges, which are currently only levied on leaseholders, with a final report back to Cabinet in April.

 

7.         The Housing Overview and Scrutiny Committee recommend that no new charge of £15 per week be introduced for sheltered housing tenants and that following the Council’s consultation, any such charge will apply to new tenants only.

 

Councillor Pothecary declared that she was against recommendations 1.5 and 1.6.

 

Supporting documents: