Issue - meetings

To present the report of the Director of Function (Resources)/Section 151 Officer.

It was RESOLVED to note:-

·           The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 1, 2021/2022;

·           The forecast outturn for 2021/2022.

The report of the Director of Function (Council Business)/Section 151 Officer setting out the financial performance of the Housing Revenue Account (HRA) Budget for Quarter 1 2021/22 was presented to the Executive’s consideration.

The Portfolio Member for Finance reported that the HRA is ring-fenced and its reserves are unable to be transferred to the General Fund, nor can General Fund reserves be used to fund the HRA.  The revenue financial position for the first quarter shows an overspend of £18k (as noted in Appendix A) and the capital expenditure is £266k below the profiled budget.  The forecast expenditure is £6,293k below budget as noted in Appendix B.  The forecast deficit (combining both revenue and capital) is now £4,906k, £4,209k less than the budget, largely due to lower than budgeted capital expenditure.   The Portfolio Member further said that added pressures on the fund is likely to rising cost of building materials. 

The Director of Function (Resources)/Section 151 Officer advised that the opening balance of the HRA reserves stood at £9.7m so as to allow for any costs that arise during the financial year to upgrade the current housing stock and to build new social housing and to borrow money to continue the projects within the medium and long term period.  He noted that whilst the underspend as regards to the capital funding of the HRA of £4.8m which will be available in the next financial year to develop new social housing projects. It is forecasted that the revenue income from rents will be lower than expected as there has been a delay in the new build programme.  Whilst noting that this is the Q1 report it is anticipated that further spending will arise during the winter months. 

The Portfolio Member for Housing Services said that procuring former Council houses and the new build of social housing will increase the revenue budget of the HRA during the next few months.

It was RESOLVED to note:-

·           The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 1, 2021/2022;

·           The forecast outturn for 2021/2022.