Issue - meetings

To consider the report of the Chief Finance Officer.

People Scrutiny Committee considered the report at its meeting on 4 January 2018 and its comments will be reported.

The Chief Finance Officer presented the report setting out the proposed changes to council dwelling rents, garage rents and service charges with effect from 1 April 2018.

Members were advised that this was the third year, of a four year, 1% reduction as set out in the Welfare Reform and Work Act 2016. The garage rents were proposed to be increased by 4% and the majority of service charges would remain at existing levels with the exception of those advised in the report.

The Portfolio Holder for Housing commented that the reduction in rents had reduced the Housing Revenue Account funds by £8 million and consequently had impacted upon the Council’s ability to invest in much needed new homes.

People Scrutiny Committee considered the report at its meeting on 4 January 2018 and its comments were reported.

RESOLVED that:-

(1)        rents of Council dwellings are reduced by 1% from 1 April 2018;

(2)        garage rents are increased by 2% from 1 April 2018; and

(3)        service charges remain at their existing levels, with the exception of charges specified below from 1 April 2018:-

(a)  7% increase in respect of water at Magdalen Gardens in line with rises in water and sewerage charges;

(b)  5% increase in electricity service charges to reflect utility contract costs;

(c)  2.5% increase in respect of the Older Persons’ property service charge in line with rises in employee costs; and

(d)  5% reduction in respect of door entry systems in line with system maintenance costs.

To consider the joint report of the Chief Finance Officer and the Director (BA)

The Technical Accounting Manager presented the report recommending a 1% rent decrease for council dwellings from 1 April 2018.

The Service Lead Housing Customers clarified the requirements for service charges to cover communal areas and explained the work of the Older Persons Property Service Officers.

People Scrutiny Committee noted and supported the report and recommended Executive to approve:-

(1)        a reduction in rents for Council dwellings of 1% from 1 April 2018;

(2)        garage rents increasing by 4% from 1 April 2018; and

(3)        service charges to remain at their existing levels, with the exception of the charges specified below from 1 April 2018:-

·         7% increase in respect of water at Magdalen Gardens in line with rises in water and sewerage charges;

·         5% increase in electricity service charges to reflect utility costs;

·         2.5% increase in respect of the Older Persons’ property service charge in line with rises in employee costs; and

·         5% reduction in respect of door entry systems in line with system maintenance costs.