Agenda item

To consider the report of the Director Finance.

Agreed:

RECOMMENDED that Council notes and approves (where applicable):-

(1) the HRA forecast financial position for 2023/24 financial year; and

(2) the revision of the HRA Capital Programme to reflect the reported variations detailed in Appendix 4 of the report.

Reason for Decision: As set out in the report.

The Executive received the report on the financial position of the HRA Revenue and Capital Budgets for the 2023/24 financial year after six months and the budgetary over/under-spend. The report highlighted areas of risk, where certain budgets had been identified as being vulnerable to factors beyond the control of the Council, and may result in potential deviations from budget.

Reference was made to a significant increase in repairs and maintenance spend, mainly due to an increase in voids, being offset by higher investment interest for the HRA, which is received from the General Fund for the balances on the major repairs reserve and the HRA working balance and capital receipts, both the General Fund and HRA were receiving about half a million pounds more than expected when we set the budget. The long-term position of the HRA remained unchanged with capital plans exceeding the resources available over the longer term.

Councillor Jobson, as an opposition group leader, spoke on this item and enquired about the voids which appeared to be on a downward trend?

Councillor Moore, as an opposition group leader, spoke on this item and enquired about general repairs which stated that 60% had been spent already, and whether tenants would be able to get their essential repairs done? She also enquired about adaptations to the budget, due to there being many property requests which have not had full evaluation. She requested this be taken as a priority because of the many elderly and disabled tenants and enquired how urgent work would be prioritised.

Councillor M. Mitchell, as an opposition group leader, spoke on this item and enquired on the general maintenance increase, how much of it was due to general inflation in contracting work and how much of it was due to additional workload?

A Member enquired on the Laings Houses refurbishments, which was originally budgeted for £14,000, but was now showing as £323,188, and wasn’t showing in the 2023/24 Capital Programme. Could reassurance be given that spend was going to happen even though it's not in the capital programme?

In response to Councillor Moore’s question in Minute No. 114, the Director Finance advised that the General Fund was providing a service to the HRA, which the HRA paid for. If a service transferred back to the HRA, there would normally be a net neutral position. However, the HRA had been paying less than the cost to the general fund over the last number of years, and there will be an additional cost to the HRA to take back the HRA rent.

In response to the questions raised, the Director Finance advised:-

·         a response to the detailed questions about the repairs and maintenance, would be provided outside of the meeting; and

·         In regards to the Laings Houses refurbishments, a budget had been approved for Laings in the Capital Programme. The report was seeking approval to spend some of the money in the current financial year. As part of this report, Members were approving the fact that they could spend the money in this financial year rather than 2024-25.

RECOMMENDED that Council notes and approves (where applicable):-

(1) the HRA forecast financial position for 2023/24 financial year; and

(2) the revision of the HRA Capital Programme to reflect the reported variations detailed in Appendix 4 of the report.