Issue - meetings

To consider the report of the Director Finance.

Agreed:

RESOLVED that the Executive approves:

(1)   the increase of Council dwelling rent by 7% from 1 April 2023;

(2)   the increase of garage rent by 7% from 1 April 2023; and

(3)   the increase of service charges by 7% from 1 April 2023, with the exception of charges specified in paragraph 11.3 of the report presented at the meeting.

Reason for Decision: As set out in the report.

Councillor Denning and Councillor D. Moore declared pecuniary interests and left the meeting during consideration of the following item.

The Executive received the report which set out the proposed changes to Council dwelling rents, garage rents and service charges with effect from 1 April 2023.

Particular reference was made to the Governments long term rent policy which enabled an annual rent increase of CPI plus 1% for a five-year period, which commenced in 2020. The CPI figure for September 2022 was 10.1%, which would have enabled the Council to apply a 11.1% increase on housing rent, however, the Government having reviewed the policy, had allowed a standalone 7% cap for 2023/24.

Members noted that the 7% rent increase was higher than anticipated in the HRA Medium Term Financial Plan at the start of the year. It was below the cost increases seen in the HRA and would support covering the cost of the challenges seen in the HRA budget.

The proposed garage and service charges were proposed to also be raised by 7%. The service charge was intended to cover the cost of providing services to support balancing the account. One exception, however, was the 12% increase in contents insurance to reflect the anticipated increase in premiums.

During the discussion the following points were raised:-

·        thanks were given to officers for the work and effort provided in supporting tenants. It was noted that, although the rent increase was capped at 7%, it was still below the rate of inflation of 11%;

·        rental income could not be used to support other Council areas and could only be used to support housing; and

·        the Portfolio Holder for Customer Services and Council Housing had previously spoken with tenants who had provided a positive response to the rent increases.

In response to a question raised, the Deputy Chief Executive advised that the Council was mindful of tenants going into rent arrears and additional support would be provided to tenants. The Council would continue to do all it could to support financial challenges faced by residents.

RESOLVED that the Executive approves:

(1)   the increase of Council dwelling rent by 7% from 1 April 2023;

(2)   the increase of garage rent by 7% from 1 April 2023; and

(3)   the increase of service charges by 7% from 1 April 2023, with the exception of charges specified in paragraph 11.3 of the report presented at the meeting.