Agenda item

The Council considered a report, presented by the Deputy Mayor, Councillor Glyn Jones, Cabinet Member for Housing and Equalities, which detailed the Housing Revenue Account (HRA) Budget proposals for the 2020/21 financial year, and the medium term financial forecast for the following three years, which had a budget to break even.

The Deputy Mayor reported that it was proposed that housing rents would be increased by 2.7% in 2020/21, which was in line with Government policy and followed four years of rent reductions.  He pointed out that the average rent in Doncaster would be the lowest of all South Yorkshire Councils at £71.63 per week.

The Deputy Mayor stated that he was proud of the low rents in Doncaster which made good quality homes affordable for over 20,000 households in the Borough, but pointed out that the Council needed to increase rents this year and future years, to enable the Council to continue to deliver excellent day to day services for tenants, to continue to collect more rent as the changes to universal credit continued to be rolled out, and to invest in properties to maintain them at the Doncaster Decency Standard.  The Council also wanted to invest over and above all of this, following the tragic fire at Grenfell, as there was an increased focus on health, safety and compliance, and the Council needed to invest to ensure that its properties were safe for its tenants. In addition, the Council also wanted to ensure that all its properties were as energy efficient as possible, to reduce fuel bills for tenants and also the carbon footprint of its homes.

It was reported that the increase in the charges for garage sites was above inflation; an increase of 6p per week from 94p to £1 per week, but these charges would be frozen for three years, and that there would be increases for the heating charges at two district heating schemes which was an increase is 6.6%.  It was noted that the Council had seen significant increases in its gas bills and an increase in its biomass charges, but investment in these schemes and other efficiencies, had enabled the Council to keep these proposed increases at 6.6% and these schemes continued to provide excellent value for money to the tenants that used them.

The Deputy Mayor also stated that the HRA continued to fund in excess of £30 million of investment a year into the Council stock each year over the next four years; the main areas of investment being energy efficiency improvements including replacement boilers, and other thermal efficiency works for hard to treat, non-traditional properties and external works such as new roofs including fascias, gutters and soffits.  He pointed out that the Council would complete the house new build programme which included properties in Toll Bar, Thorne, Blaxton, Edenthorpe and Intake, and that changes to the borrowing rules for the HRA and additional match funding which had been identified, gave the Council a real opportunity to accelerate its new build programme in future years.

In concluding his presentation, the Deputy Mayor referred to the proposal within the Capital Budget report being considered at this meeting today, to approve £80 million of prudential borrowing to enable the delivery of an ambitious and exciting medium term plan for future new build Council housing.

Following the presentation of the Housing Revenue Account Budget 2020/21 proposals, Members were afforded the opportunity to comment on the report.

In accordance with Council Procedure Rule 21.4, a recorded vote was taken on the recommendations contained within the report, which was declared as follows:-

For - 44

The Chair of Council, Councillor Linda Curran, the Vice-Chair of Council, Councillor Paul Wray, the Mayor of Doncaster, Ros Jones, the Deputy Mayor, Councillor Glyn Jones, and Councillors Duncan Anderson, Lani-Mae Ball, Nigel Ball, Iris Beech, Rachael Blake, Nigel Cannings, Phil Cole, Mick Cooper, George Derx, Susan Durant, Nuala Fennelly, Neil Gethin, Sean Gibbons, John Gilliver, Pat Haith, John Healy, Rachel Hodson, Charlie Hogarth, Mark Houlbrook, David Hughes, R. Allan Jones, Ken Keegan, Jane Kidd, Majid Khan, Tosh McDonald, Chris McGuinness, Sue McGuinness, Bill Mordue, John Mounsey, David Nevett, Jane Nightingale, Ian Pearson, Tina Reid, Andrea Robinson, Kevin Rodgers, Dave Shaw, Derek Smith, Frank Tyas, Austen White and Sue Wilkinson.

Against - 4

Councillors Nick Allen, Steve Cox, Martin Greenhalgh and Jonathan Wood.

Abstain – 1

Councillor Jane Cox.

On being put to the meeting, the recommendations contained within the report were declared CARRIED.

RESOLVED that the Housing Revenue Account (HRA) Budget proposals, as detailed in the report, be approved including:-

(1)      rents be increased from 6th April 2020, by 2.7%, as detailed within paragraphs 7 to 10 of the report, in line with Government policy; this will result in an average weekly rent increase of £1.88, resulting in an average rent of approximately £71.63 per week. Rents will be charged every week of the year;

(2)      the budget proposals for the HRA for 2020/21, as detailed within Appendix A of the report; these proposals set a balanced budget for the HRA and maintain a reserve of £4 million; and

(3)      fees and charges, as detailed in paragraph 14 of the report.