Agenda and minutes

To receive declarations of interest from Members in respect of items listed on the agenda.

Cllr Wyatt raised a non-pecuniary personal interest as a Council tenant in relation to Item 6 – Housing Revenue Account Rents and Service Charges 2023/24. He remained present for the discussion and vote.

To receive questions relating to items of business on the agenda from members of the public or press who are present at the meeting.

There were no members of the press and public present.

To consider whether the press and public should be excluded from the meeting during consideration of any part of the agenda.

There were no exempt items.

To consider a report outlining proposals for the Council’s Budget and Council Tax for 2023/2. The proposals are based on the Council’s Provisional Local Government Finance Settlement for 2023/24, budget consultation and the consideration of Directorate budget proposals through the Council’s Budget process alongside a review of the financial planning assumptions within the Medium Term Financial Strategy (MTFS).

Cabinet Portfolio: The Leader

Strategic Directorate: Finance and Customer Services

The Board considered a report outlining proposals for the Council’s Budget and Council Tax for 2023/24. The proposals were based on the Council’s Provisional Local Government Finance Settlement for 2023/24, budget consultation and the consideration of Directorate budget proposals through the Council’s Budget process. The report also reviews details of the financial planning assumptions within the Medium-Term Financial Strategy (MTFS).

The Chair invited the Leader to present the report. Also in attendance were the Deputy Leader and the Cabinet Members for Adult Care and Public Health; Children and Young People; Corporate Services, Community Safety and Finance; and Housing. Apologies were received from the Cabinet Members for Jobs and the Local Economy; Social Inclusion; and Transport and the Environment.

In opening, the Leader outlined that there was an £6m funding gap which had resulted from pressures outside the Council’s control, such as the national pay award, inflation and rising energy costs. It was highlighted that since the last financial monitoring report was considered, the provisional settlement had been announced which had led to a slightly better position however it would not address the funding pressures fully. The use of reserves would be required , however this had to be done on a sustainable basis.

The Leader highlighted the prioritise underpinning the budget proposals. These were to protect frontline services; avoid placing additional burdens for people on lower incomes; and ensure that services were on a sustainable footing year on year.

The proposals outlined £4 million of cost reductions some of which were permanent savings, with others being offered on a temporary basis. The proposals also contained £0.5m of investments which could be achieved in the current climate.

The Chair thanked the Leader for his introduction and invited members to ask questions and a discussion on the following points ensued:

·       The challenges of making budget projections in light of inflationary and energy cost pressures and the necessity of using reserves to meet the shortfall.

·       Whether greater emphasis should be given to the impact of financial austerity on the delivery of services. It was outlined that the press release accompanying budget proposals referred explicitly to the effect this had had on people’s lives and the Council’s ability to deliver services.

·       Relatively few of the budget savings proposals would be carried over to next year’s budget as these were one off savings.

·       It was confirmed discussions had taken place about the use of reserves and sustainability. it was felt that reasonable assumptions had been made concerning next year’s position.

·       Assumptions about final grant allocations were made on the basis of previous allocations. Any shortfall may require further use of reserves, however that measure was thought unlikely.

·       The budget assumptions were based on the best available information. If these assumptions were incorrect, the Council would need to take further action in year 3 to rectify.

The Leader outlined the proposals relating to fees and charges (as outlined in Appendix 7 of the report). In a typical year a 2% increase would be assumed, however in  ...  view the full minutes text for item 152.

To seek approval for the proposed values of the housing rents, non-dwelling rents, District Heating and service charges and the draft Housing Revenue Account Budget for 2023/24.

Cabinet Portfolio: Housing

Strategic Directorate: Adult Care, Housing and Public Health

The Chair welcomed the Cabinet Member for Housing to the meeting. The Cabinet Member introduced a report seeking approval for the proposed values of the housing rents, non-dwelling rents, District Heating and service charges and the draft Housing Revenue Account Budget for 2023/24.

Also in attendance were the Strategic Director for Adult Care, Housing and Public Health, the Assistant Director for Housing and Interim Head of Services.

The Cabinet Member outlined that there was a requirement for the Council to produce a plan which would allow the Council to maintain and develop its stock. It was noted that the Government policy had capped social rents at 7% and this was reflected in the proposals for a corresponding increase in dwelling rents and shared ownership rents (Option 1). It was outlined that there was a proposal for a 6% increase to charges for garages, communal facilities, cooking gas and laundry facilities. In respect of district heating, it was noted that the Council had cushioned the affect of energy price rises, however in order for the scheme to break even in the long term, the unit charge per KwH would be increased by 186.43% and weekly prepayment charges increased by a maximum of 150% (dependent on property size).  Approval was also sought to retain the policy of rent realignment to formula rent levels for re-let properties.

Options for housing rents and district heating charges were detailed in the report.

The Chair invited questions from the committee and a discussion on the following issues ensued.

·      Clarification was sought on how tenants using district heating would be supported. It was outlined that the current cost model was not sustainable which was why it was being raised. It was noted that the existing taper was in place and there was parity across the charges. The Tenancy Support Team would work with tenants to maximise take-up of benefits and vouchers for pre-payment meter energy support. The report contained details of the number of tenant households in receipt of Universal Credit and/or Housing Benefit.

·      Details were requested on the process for raising formula rents, noting that it would take approximately 12 years to achieve parity. It was outlined that the Council was following the process and timescales outlined by Government policy.

·      It was suggested that clear communication should be issued to outline the reasons behind the increases to the district heating charges and where support was available.

·      Assurance was sought that officers would work with tenants, including those not in receipt of benefits. It was noted that affordability tests were conducted prior to tenancies being offered.  If surplus payments were accrued on pre-payment meters, this was paid back to the customer at regular intervals

·      Information was sought if lower service charges could have been introduced to mitigate the compound impact of charges. It was noted that the recommended position was required to avoid a deficit.

·      Clarification was sought if consideration had been given to how the proposals may impact on tenants with long term health conditions or  ...  view the full minutes text for item 153.

To consider a report setting out the Council’s HRA Business Plan and its investment priorities over a 30-year period, providing an overview of the current position and the reason for changes to the Business Plan.

Cabinet Portfolio: Housing

Strategic Directorate: Adult Care, Housing and Public Health

The Chair invited the Cabinet Member for Housing to introduce a report which provided a detailed technical overview of the current position and the reasons for changes to the Housing Revenue Account Business Plan. The Cabinet Member outlined that this report should be considered in conjunction with Housing Revenue Account Rents and Service Charges report 2023/24.

Also in attendance were the Strategic Director for Adult Care, Housing and Public Health, the Assistant Director for Housing and Interim Head of Services.

The report detailed that the Housing Revenue Account recorded all expenditure and income relating to the provision of Council housing and related services, and the Council was required to produce an HRA business plan setting out its investment priorities over a 30 year period.

The overall approach was to make savings where it was feasible to do so and invest in future new affordable housing and to position the housing service so it is best placed to respond to ongoing inflationary pressures and future challenges as they arrived.

It was outlined that the current business plan took account of known costs for housing growth, housing management and repairs and maintenance. To date, a total of 530 homes were already completed or contracted for completion by March 2026. It was proposed a further £115.7m would be invested to deliver more council homes by 2025-26. Over the short to medium term forecast, the business plan was operating at or around the minimum balance; however, this would increase to a surplus of £9.452m by year 30 of the plan.

Details of the planning assumptions were outlined in the report, including options for rent and service charge increases. Base option 1 was recommended for approval.

Having had a full discussion of proposals in its consideration of the Housing Revenue Account Rents and Service Charges report, no further questions were raised by the Board. The Chair thanked the Cabinet Member and Officers for their attendance.

Resolved:

1)    That Cabinet be advised that the recommendations be supported.

“That Cabinet recommends to Council to: -

1.    Approve the proposed 2023-24 Base Case Option 1 for the HRA Business Plan.

2.    Review the Plan annually to provide an updated financial position.”

To consider any issues referred for call-in from recent Cabinet meetings.

There were no call-in issues.

To determine any item which the Chair is of the opinion should be considered as a matter of urgency.

There were no urgent items.

The next meeting of the Overview and Scrutiny Management Board will be held on 22 February 2023 at 10.00am at Rotherham Town Hall.

Resolved: - That the next meeting of the Overview and Scrutiny Management Board will be held at 10.00am on Wednesday 22 February 2023 at Rotherham Town Hall.