Agenda item

Council considered a report presented by Councillor Jane Nightingale, the Cabinet Member for Housing which sought approval for the Housing Revenue Account Budget for 2016/17.

Councillor Nightingale outlined that the report set out the HRA budget for the 2016/17 financial year and the next three years and followed the same strategy as in previous years, with the 2016/17 budget estimated to break even, to have a working balance of £3.0m over the next four years.

Members were informed that the recommendations within this report included the following:-

·         That housing rents are decreased by 1% in 2016/17 and in the following three years.

·         That charges for garages, garage sites and enclosed gardens are frozen.

The rent decrease was announced by government in the summer budget last year and it was included with the Welfare Reform and Work Bill 2015/16 which were currently working through the parliamentary process. Councillor Nightingale reiterated that any reduction in housing costs was clearly very beneficial to current tenants in the short term and the average rent in Doncaster would remain the lowest of all Metropolitan Councils at £70.57 per week.

However, Council noted that this change would also mean a significant reduction in the money available to spend on maintaining and improving the Council’s housing stock and it would have a significant impact on the Council’s capacity to build new Council houses.

Councillor Nightingale added that the Council would also have to consider the other implications of the Government’s new social housing policies during the coming months, including the extension of right to buy and ‘Pay to Stay’. Unfortunately these Government policies could mean that in the future there would be significantly less affordable housing to rent in Doncaster for residents who need it.

However, Councillor Nightingale assured Council that the Labour administration would continue to build Council housing in Doncaster to meet local need, including the development of 140 new council-owned affordable homes as detailed in the Capital Budget.

The report informed Members that overall the impact of the Government’s policies on the Housing Revenue Account transformed a healthy account to one which only just breaks even in four years time, but Councillor Nightingale reassured Council that she was confident that Doncaster Council and St Leger Homes would continue to deliver excellent, value for money services to all their tenants over the next four years and therefore recommended the proposals to Council.

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- 49

The Chair of Council, Councillor Paul Wray, the Vice-Chair of Council, Councillor David Nevett, the Mayor of Doncaster, Ros Jones, Deputy Mayor, Councillor Glyn Jones and Councillors Nick Allen, Nigel Ball,  Iris Beech, Joe Blackham, Rachel Blake, Elsie Butler, Phil Cole, Tony Corden, Jane Cox, Steve Cox, Jessie Credland, Linda Curran, George Derx, Susan Durant,  Neil Gethin, Sean Gibbons, Pat Haith, James Hart, John Healy, Rachel Hodson, Charlie Hogarth, Sandra Holland,  Mark Houlbrook, Eva Hughes, Alan Jones, Ken Keegan, Majid Khan, Jane Kidd, Ted Kitchen, Pat Knight, Sue Knowles,  Chris McGuiness, Sue McGuinness, John McHale, Bill Mordue, John Mounsey, Jane Nightingale,  David Nevett, Andy Pickering, Kevin Rodgers, Craig Sahman, Dave Shaw, Alan Smith, Clive Stone, Austen White and Sue Wilkinson.

Against – 0

Against - 0

On being put to the meeting, the Housing Revenue Account 2016/17 was declared CARRIED.

RESOLVED that Council agreed to approve the Housing Revenue Account Budget proposals as set out in the report including:-

(1)           Rents be reduced from  4 April, 2016, by 1% as detailed in paragraphs 7 to 10 of the report;

(2)           The budget proposals for the HRA for 2016/17 contained within Appendix A of the report which sets a balanced budget for the HRA and maintains a reserve of £3m; and

(3)           The fees and charges as set out within paragraph 13 of the report.