Agenda item

The Committee considered two reports on the Housing Revenue Account (HRA) namely on the proposed rents to be set for 2008/09 and on the budget for the same year.  The rent setting report set out the Government’s advice on rent structuring and in accordance with the advice of the Department of Communities and Local Government proposed an increase of 3.9% plus ½% plus £2, an average rise of 6.22%.  A rise of 3.9% was also proposed for garages and garage bases.

In respect of the budget, changes to the Government’s housing subsidy system had adversely impacted upon the level of available resources and action was required to maintain a balanced HRA business plan over the medium term to enable continued delivery of the decent homes improvement programme.  Accordingly, significant savings were having to be achieved in the next two financial years to ensure that the budget was balanced.

In response to Members’ questions, Officers explained that the Government was requiring rents to be increased so that they eventually converged with the currently higher rents of Registered Social Landlords.  Accordingly, whilst the current year’s increase appeared high, the Council had little option but to meet the Government’s requirements whilst mitigating the increase as far as possible. 

The Committee sought information on the current occupancy level of garages and garage bases in the town.  It was noted that only some 40% of Council garages were currently let and Members expressed the view that the proposed increase in garage rents of 3.9% was unlikely to enable the Council to let a larger proportion of them.  Accordingly, it was suggested that the Cabinet should be requested to consider whether such an increase was appropriate, given a vacancy rate of 60%. 

Resolved -   That the reports be noted and that the Cabinet be advised of the Committee’s views in respect of garage rents.