Issue - meetings

To consider the final outcome of the Review of the Housing Revenue Account.

(Report attached)

The Committee received a report on the review of the Housing Revenue Account (HRA).

Members were advised that the Government would be dismantling the current HRA subsidy system and that it would be replaced with a new regime of self financing with effect from April 2012.

Officers advised that the Council would have to take on a share of the national housing debt but would be entitled in future years to keep the subsidy, which is currently paid each year to Central Government.

Members were informed that the Council’s share of this debt amounted to £98,929 million, payable to central government on 28th March 2012 with self financing operational from 1st April 2012.  The Council would be compensated for the interest paid in respect of the days between 28th March and 1st April 2012, which is expected to be £35,000.

An additional recommendation was proposed from the Chair as follows:

“Officers bring forward a report outlining the proposals for how this Council might build council houses on some of the land owned by the Council and already declared surplus.”

RESOLVED that

subject to the Council’s approval of the budgetary implications,

1)         the 5 year Housing Capital Programme as set out at Appendix 1 to the report be approved;

2)         the Director of Finance and Resources be authorised to acquire debt from the Public Works Loans Board up to the amount of the actual Debt Cap in line with the profile set out at  Appendix 4 to the report;

3)         subject to Members’ comments, the viability of the 30 Year Business Case for the Housing Revenue Account, and the projected availability of resources within the Business Plan to undertake projects such as regeneration be noted;

4)                 Officers be authorised to incur expenditure as detailed in Appendix 1 to the report, up to the limit approved by the Council and for the purposes detailed in the report;

5)                 Officers bring forward a report outlining proposals for how this Council might build council houses on some of the land owned by the Council and already declared surplus; and

RECOMMENDED that

6)                 the Council approve the financial / budgetary implications, as detailed in the report.