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Agenda item

Agenda item

Council Housing Budget 2020/21

The purpose of the report by the Director of Housing, Neighbourhood and Buildings is to seek the Cabinet Member’s decisions on Council Housing budgets, rents and other charges and to give authority for managers to incur expenditure in 2020/21.

 

The report also seeks to:

·         Approve the Revised Revenue budget 2019/20 and give authority to the Director Housing, Neighbourhood and Building Services & the Director of Finance and Information Services, to amend the budgets to reflect the latest available information prior to finalising budgets for 2019/20.

·         Note the forecast Revenue Budgets for 2021/22 to 2022/23 arising from the proposals set out in this report

·         Set rents in accordance with Central Government's social rent setting

policy.

 

RECOMMENDED

 

It is recommended that the Cabinet Member for Housing approve the following:

 

(i)        The Revised Budget as set out at Appendix 3.    

 

 

(ii)      All rents and charges to be effective from 1st April 2020 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 2020/21 to be set in accordance with Central Government's Social Rent Policy.

 

(iv)    General Service charges for 2020/21 to be set at this meeting as set out in this report, and in accordance with Appendix 5.

 

(v)     Sheltered Housing Service charges for 2020/21 to be set at this meeting as set out in this report, and in accordance with Appendix 6.

 

(vi)    Laundry charges for 2020/21 to be set at this meeting as set out in this report, and in accordance with Appendix 7.

 

(vii)   Heating charges to be set in accordance with Appendix 8.

 

(viii)  Garages and parking site rents 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)    Revenue Budget 2020/21 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 2020/21.

 

(x)     The relevant Managers be authorised to incur expenditure in 2020/21.

 

(xi)    The forecast Revenue Budgets for 2021/22 to 2022/23 as set out in Appendix 3 arising from the proposals contained in this report, be noted.

 

Decision:

The Cabinet Member for Housing approved the following:

 

(i)             The Revised Budget as set out at Appendix 3 of the report.          

 

(ii)            All rents and charges to be effective from 1st April 2020 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 2020/21 to be set in accordance with Central Government's Social Rent Policy (rise of 2.7%).

 

(iv)       General Service charges for 2020/21 to be set at this meeting as set out in the report, and in accordance with Appendix 5.

 

(v)        Sheltered Housing Service charges for 2020/21 to be set at this meeting as set out in the report, and in accordance with Appendix 6.

 

(vi)       Laundry charges for 2020/21 to be set at this meeting as set out in the report, and in accordance with Appendix 7 (no rise).

 

(vii)      Heating charges to be set in accordance with Appendix 8 (no rise).

 

(viii)     Garages and parking site rents 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)       Revenue Budget 2020/21 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 2020/21.

 

(x)        The relevant Managers be authorised to incur expenditure in 2020/21.

 

(xi)       The forecast Revenue Budgets for 2021/22 to 2022/23 as set out in Appendix 3 arising from the proposals contained in this report, be noted.

Minutes:

Wayne Layton, Finance Manager, presented the report on behalf of both the Director of Housing, Neighbourhood and Building Services and the Director of Finance and Resources.  He outlined the background, with the effect of the Welfare Reform Act reducing rents impacting the Housing Budget with a £12m reduction in Reserves.  With the removal of the borrowing cap the council had been able to build properties again.  Against this background it was recommended that rents rise by 1.7% (level of the Consumer Price Index) plus 1%, totalling 2.7%. General Service Charges were recommended to rise in line with inflation and for Sheltered Housing just above inflation (to cover the cost of the service and some use of agency staff).  It was not proposed to increase laundry or heating charges (with PCC using buying in power for energy supply).  For garage and parking charges the rise was generally 1.7%, but a rise for out of area/non domiciliary use of up to 5%.  Projections were for a £1.2m deficit in the budget.   There had been consultation meetings held with residents to explain these proposed changes and ask for feedback.

 

Peter Burton of the CLG was happy with the consultation exercise and Maria Cole agreed that there had been a lot of involvement and corrected the report at 4.2 to refer to 'resident engagement' rather than 'resident development'.

 

Councillor Corkery asked if the parking charges were set to break even for maintenance or to create a surplus?  Mr Layton explained that the levels were linked to the demand in each area, with there not being enough spaces for all residents, so there is a nominal charge and this is something that will receive further review before next year's budget round. He confirmed in response to Councillor Corkery's question that rents would not go above the affordable rent level with the proposed increase.

 

Councillor Corkery commented that there had been a low response rate but he had received general feedback that the rents were reasonable.  However residents had raised with him some concerns regarding the parking charges, especially in Somerstown, where there were variations with Hyde Park Road permits costing £30 and Ladywood House £50, and individual parking space at Ivy Close costing £200.  He also queried the use of agency staff at a higher cost by the council.

 

Councillor Payter-Harris referred to the year on year deficit, which was explained in Appendix 3.  He queried the youth clubs outturn and forecast position varying by £22k.  Mr Layton responded that there had been an additional £15k grant for youth clubs from the Police & Crime Commissioner and that there had been an adjustment in September when staff should have been accounted for in community centres.   James Hill, as Director of Housing, Neighbourhood and Building Services, reported that there has been movement towards consistent fee charges, which had been applied across the community centres managed by Housing and they were increasing their own income through hiring out spaces.  Mr Layton reported that there had been an extraordinary bill for £50k for a burst water main at Paulsgrove Community Centre.  With regard to community wardens Councillor Sanders stressed that there had been a doubling of staff, funded only in part by the Housing Revenue Account. Officers undertook to provide further information to the Housing Members regarding the variance of £22k as highlighted by Councillor Payter-Harris.  It was noted that a further report on community wardens was being considered by the Cabinet Member for Community Safety the following day.

 

Councillor Sanders responded to the points that had been raised, such as the use of agency staff, for which a pilot scheme for a sheltered housing scheme was being undertaken to try to reduce the level of use in line with the Ethical Care Charter.  The level of rents were being set at a level for people to be able to afford and the intention was to maximise the social rent properties in the city.  The Cabinet Member for Housing regretted that rents would need to rise this year to address the deficit position, as the £12m reduction in income had meant that improvements to properties had been impacted. The parking fees would be further investigated in the future, with integration with transport officers. Councillor Sanders did not propose to put up heating or laundry charges.

 

 

DECISIONS

The Cabinet Member for Housing approved the following:

 

(i)             The Revised Budget as set out at Appendix 3 of the report.   

 

(ii)            All rents and charges to be effective from 1st April 2020 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 2020/21 to be set in accordance with Central Government's Social Rent Policy (rise of 2.7%).

 

(iv)      General Service charges for 2020/21 to be set at this meeting as set out in the report, and in accordance with Appendix 5.

 

(v)       Sheltered Housing Service charges for 2020/21 to be set at this meeting as set out in the report, and in accordance with Appendix 6.

 

(vi)      Laundry charges for 2020/21 to be set at this meeting as set out in the report, and in accordance with Appendix 7 (no rise).

 

(vii)     Heating charges to be set in accordance with Appendix 8 (no rise).

 

(viii)    Garages and parking site rents 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)      Revenue Budget 2020/21 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 2020/21.

 

(x)       The relevant Managers be authorised to incur expenditure in 2020/21.

 

(xi)      The forecast Revenue Budgets for 2021/22 to 2022/23 as set out in Appendix 3 arising from the proposals contained in this report, be noted.

Supporting documents: