The report sets out the financial position of the Housing Revenue Account (HRA) and the Draft Budget for 2016/17.

That the draft Housing Revenue Account budget proposals for 2016/17, as set out in the report, be approved as the basis for consultation with Overview and Scrutiny Committees and other interested parties.

The Executive considered a report from the Executive Member for Corporate Resources that set out the financial position of the Housing Revenue Account (HRA) and the draft budget for 2016/17.  The report also set out proposals relating to recent legislative changes, the debt strategy, investment potential

and rent reduction.  

The Government had intervened in the financing of stock retained authorities HRAs and had previously stipulated that rents should reduce by 1% for each of the next 4 years.  It was estimated that the rent reductions would result in a loss of income of £12.7m over the 4 years and £219m over the 30 year Business Plan.

In response to a question, the Executive Member for Corporate Resources explained that in 2012 the Government had abolished the housing subsidy system to enable councils to have greater autonomy and influence over the financial management of their housing assets.  As a result, the Council had acquired a proportion of the national housing debt in return for the right to retain the full rental income from its housing stock.

Reason for decision:  To enable consultation on the draft budget for HRA for 2016/17, prior to final recommendations being made by the Executive to Council in February 2016.

RESOLVED

that the Draft Housing Revenue Account budget proposals for 2016/17, as set out in the report, be approved as the basis for consultation with Overview and Scrutiny Committees and other interested parties.