Agenda, decisions and draft minutes

There were no apologies for absence.

Councillor Corkery declared an interest as he is a Portsmouth City Council (PCC) tenant. In the interests of transparency Councillor Sanders said that his mother is a PCC tenant.

Purpose

1.    The law requires that all income and expenditure relating to Council Housing is accounted for separately in the Housing Revenue Account (HRA).  All other Council income and expenditure is accounted for together in a separate account called the General Fund.  This report deals solely with the HRA.

2.    The City Council has delegated the function of setting rents, charges and revenue budgets for Council Housing to the Cabinet Member for Housing and Preventing Homelessness.  Following consultation with residents and leaseholders, this report seeks to address all HRA budget issues. 

3.    The purpose of this report is to seek the Cabinet Member’s decisions on the City Council Housing budgets, rents and other charges and to give authority for managers to incur expenditure in 2022/23.

4.    The report also seeks to:

o      Note the Forecast Revenue Outturn for 2021/22 and give authority to the Director of Housing, Neighbourhood and Building Services & the Director of Finance and Resources to amend the budgets to reflect the latest available information prior to finalising budgets for 2022/23.

o      Note the Forecast Revenue Budgets for 2023/24 to 2024/25 arising from the proposals set out in this report.

o      Set rents with an average increase of 4.1%, which is in line with the maximum increase allowed by Central Government's Social Rent Setting Policy.

RECOMMENDED that the Cabinet Member approves the following:

(i)        The Forecast Revenue Outturn for 2021/22 arising from monitoring discussions with Managers, as set out at Appendix 3, be noted.          

(ii)      All rents and charges to be effective from 28th March 2022 or such other date as determined by the Director of Housing, Neighbourhood and Building Services in consultation with the Director of Finance and Resources.

(iii)    Dwelling Rents for 2022/23 to be set with an average increase of 4.1%, which is in line with the maximum allowable under Central Government's Social Rent Setting Policy.

(iv)    General Service Charges for 2022/23 to be set at this meeting, as set out in this report, and in accordance with Appendix 5.

(v)     Sheltered Housing Service Charges for 2022/23 to be set at this meeting, as set out in this report, and in accordance with Appendix 6.

(vi)    Laundry Charges for 2022/23 to be set at this meeting, as set out in this report, and in accordance with Appendix 7.

(vii)   Heating Charges for 2022/23 to be set in accordance with Appendix 8.

(viii)  Garages and Parking Site Rents for 2022/23, as shown in Appendix 9, be approved and authority to let garages at reduced rents where demand is low be delegated to the Director of Housing, Neighbourhood and Building Services in consultation with the Director of Finance and Resources.

(ix)    The Revenue Budget for 2022/23, as set out in Appendix 3, be approved and authority given to the Director of Housing, Neighbourhood and Building Services in consultation with the Director of Finance and Resources to amend the budgets to reflect the latest available information prior to finalising budgets for 2022/23.

(x)     The relevant Managers be authorised  ...  view the full agenda text for item 3.

           The Cabinet Member approved that:

(i)        The Forecast Revenue Outturn for 2021/22 arising from monitoring discussions with Managers, as set out at Appendix 3, be noted.   

(ii)       All rents and charges to be effective from 28th March 2022 or such other date as determined by the Director of Housing, Neighbourhood and Building Services in consultation with the Director of Finance and Resources.

(iii) Dwelling Rents for 2022/23 to be set with an average increase of 3.5%.

(iv) General Service Charges for 2022/23 to be set at this meeting, as set out in this report, and in accordance with Appendix 5.

(v)  Sheltered Housing Service Charges for 2022/23 to be set at this meeting, as set out in this report, and in accordance with Appendix 6.

(vi) Laundry Charges for 2022/23 to be set at this meeting, as set out in this report, and in accordance with Appendix 7.

(vii)   Heating Charges for 2022/23 to be set in accordance with Appendix 8.

(viii)  Garages and Parking Site Rents for 2022/23, as shown in Appendix 9, be approved and authority to let garages at reduced rents where demand is low be delegated to the Director of Housing, Neighbourhood and Building Services in consultation with the Director of Finance and Resources.

(ix)    The Revenue Budget for 2022/23, as set out in Appendix 3, be approved and authority given to the Director of Housing, Neighbourhood and Building Services in consultation with the Director of Finance and Resources to amend the budgets to reflect the latest available information prior to finalising budgets for 2022/23.

(x)  The relevant Managers be authorised to incur expenditure in 2022/23.

(xi) The Forecast Revenue Budgets for 2023/24 and 2024/25 arising from the proposals contained in this report, as set out in Appendix 3, be noted.

Wayne Layton, Finance Manager, introduced the report, noting that an increase of 4.1% is the maximum allowable and would allow the Housing Revenue Account (HRA) budget to have an in-year surplus of £410,000. An increase of 3.5% would give a balanced budget and avoid a deficit.

In response to questions from the Residents' Consortium representatives, officers explained that if the HRA had a deficit the reserves (currently around £23m) would have to be used but as an organisation the council cannot continue to set budgets that are in deficit. It would deplete the reserves completely which is something officers try to avoid. The HRA's 30-year business plan also needs to accommodate the cost of replacing ageing housing stock. 

Over the last three to four years the council has been losing about 70 to 90 properties annually under Right to Buy.

Improvements to blocks such as Wilmcote House had been made as they were clearly necessary but funding has been set aside for significant work to other blocks such as the Court properties. It is currently out to tender and officers are waiting to receive priced work. Work is planned to start later in 2022 and continue through to 2024. The project works will include communal entrance doors, decoration and lighting. Decisions about removing the walkways will be made after the other work is done. Officers are working closely with the Area Housing Office over anti-social behaviour and engagement with residents and young people. The March portfolio meeting will consider the 2022/23 capital programme for all housing stock, including investment in decarbonisation of the stock. 

Councillor Corkery was concerned about the effect of a "two-tier" rent regime with about 2% housing stock on affordable rents as these are often much more than social rents. Officers explained affordable rent is capped at the Local Housing Allowance (LHA) rate. 60% tenants on affordable rent are in receipt of Universal Credit, 11% are not in receipt of housing benefit or Universal Credit, about 50% are below the LHA rate and 50% are at the LHA rate. No-one pays more than the LHA rate, regardless of benefit status. Councillor Sanders acknowledged the concern and noted that other local authorities do not have the "two-tier" approach. Officers have been examining the approach and the "least worst" approach is a uniform increase with the LHA rate at the top so rents will not be more than housing benefit. The key point is that people can afford to pay their rent.

There is no allocation in the budget for a specific hardship fund though the General Service Charges include the Money Advice Service. Advisors help people maximise income, consolidate debts and support them with grant applications for energy schemes. The local authority has spent about £28,000 on energy grants with a third for tenants. Tenants have also been awarded about £60,000 in discretionary grants so far. Officers work with the Tackling Poverty Co-ordinator.

Maria Cole was very grateful for a Discretionary Housing Payment grant to help with the  ...  view the full minutes text for item 3.

Purpose

To provide the Cabinet Member for Housing and Preventing Homelessness with an update on Full Fibre to the Home City Fibre infrastructure works.

The Cabinet Member noted the report which is for information only and is not subject to call-in.

Meredydd Hughes, Assistant Director, Buildings, introduced the report. He confirmed that the programme runs from 2021 to 2024 so blocks like Handsworth and Ladywood will eventually be covered. Some of the Court blocks are included in work planned for the first quarter of 2022.

Members commended the project as it bridges the digital divide and adds social value by using local labour.

The Cabinet Member noted the report which is for information only and is not subject to call-in.