Issue - meetings

To submit a report by the Director of Function (Resources)/Section 151 Officer.

It was resolved to note the following –

·        The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 3 2021/22.

·        The forecast outturn for 2021/22.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Housing Revenue Account (HRA) Budget for Quarter 3 2021/22 was presented for the Executive’s consideration.

Councillor Robin Williams, Portfolio Member for Finance presented the report which set out the financial performance of the Housing Revenue Account (HRA) for the period from 1 April, 2021 to 31 December, 2021 comprising of both revenue and capital and he highlighted that the HRA is ring-fenced and its reserves cannot be used for purposes other than to fund costs relating to the Council’s housing stock; neither can General Fund balances be used to fund the HRA.

The HRA surplus/deficit at the end of Quarter 3 shows an overspend of £639k compared to the profiled budget. The capital expenditure is £3,384k below the profiled budget. The forecast expenditure is £12,169k below budget. The forecast surplus combining both revenue and capital is now £759k, £9,875k better than the budget due mainly to lower than budgeted capital expenditure.

The Director of Function| (Resources)/Section 151 Officer referred to the variances in the budget and advised that rental income for the HRA is below that projected as a result of delays in new stock coming on stream; non repairs and maintenance expenditure is also below the profiled budget while the Housing Maintenance unit is overspent largely as a result of increased repairs and maintenance activity in recovering the backlog caused by Covid 19 restrictions. A significant underspend is projected on the capital side and is attributable to a number of reasons including  less progress than expected being made on housing developments that were forecast to commence in the current financial year. Planned investment in existing stock has also been impacted by the Covid pandemic. The underspend on capital expenditure means that the amount funded from the HRA revenue account is similarly reduced. The balance is then available to fund projects that have been deferred into next year.

It was resolved to note the following –

·         The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 3 2021/22.

·         The forecast outturn for 2021/22.