Decision
Analysis
outcome: The proposals were endorsed for recommendation to the Council.
summary: The decision involves endorsing the Housing Revenue Account (HRA) Budget proposals for 2024/25, which includes rent increases for social and affordable housing, garage rents, and sheltered housing service and utility charges, retaining Right to Buy receipts, and repaying a loan rather than refinancing.
topline: The council has decided to endorse a budget proposal that includes substantial rent and charge increases for the 2024/25 fiscal year.
reason_contentious: The decision is contentious due to the significant rent and charge increases for residents during a period of economic challenges, and the potential impact on low-income households.
affected_stakeholders: Residents in social and affordable housing, garage renters, sheltered housing occupants, and the local government's financial planning.
contentiousness_score: 7
political_party_relevance: There is no direct mention of political parties or political influence in the decision.
URL: https://baberghmidsuffolk.moderngov.co.uk/ieDecisionDetails.aspx?ID=1092
Decision Maker:
Outcome:
Is Key Decision?: No
Is Callable In?: No
Purpose:
Content: It was RESOLVED: - 1.1 That the HRA Budget proposals for 2024/25 set out in this report, be endorsed for recommendation to Council on 20 February 2024. 1.2 That a CPI + 1% increase of 7.7% for social rents, equivalent to an average rent increase of £7.92 and a RPI + 0.5% (9.4%) increase for affordable rent of £11.13, a week be implemented. 1.3 That the RPI increase of 8.9% in garage rents, equivalent to an average rent increase of £3.83 or £4.71 (private rental), a month be implemented. 1.4 That an increase of for sheltered housing service charges, equivalent to £49.12 a month, be implemented. 1.5 That an increase for sheltered housing utility charges, equivalent to £28.95 a month, be implemented, following no utility increase for 3 years (from 2019/20). 1.6 That in principle, Right to Buy (RTB) receipts should be retained within the Housing Revenue Account, to enable continued development and acquisition of new council dwellings. 1.7 That it is recommended that the £6m PWLB loan due to be repaid in 2024/25 is repaid rather than refinancing at a higher interest rate. 1.8 That the Revenue Contribution to Capital be increased from £4.48m to £5.572m REASON FOR DECISION To bring together all the relevant information to enable Cabinet Members to review, consider and comment upon the Council’s General Fund budget for endorsement and recommendation to Council Alternative Options Considered and Rejected: Setting a balanced budget is a statutory requirement: the budget figures presented in this report currently show a gap between forecast expenditure and income which needs to be resolved. Options for balancing the budget will be tabled at Cabinet for its consideration. Any Declarations of Interests Declared: None Any Dispensation Granted: None
Date of Decision: