HRA Draft Budget 2012/13Proposed significant changes

Housing Briefing 19 January 2012

Content• The Housing Revenue Account• HRA Budget 2011/12• Unavoidable Budget Movements• Increased Income• Reduced Income• Savings• Recommended Growth• HRA Budget 2012/13

The Housing Revenue Account

• Introduced in the Local Government and Housing Act 1989

• LG&H 1989: “sums falling to be credited or debited in respect of houses and other buildings which have been provided under Part II of the Housing Act 1985”

• DoE Circular 8/95: “the HRA should be primarily a landlord account, containing the income and expenditure arising from a housing authority's landlord functions”

HRA Budget 2011/12HRA Budget 2011/12 £000s

Repairs & Maintenance 13,322

Rents, Rates, & Other Property Costs 6,176

General Management 9,635

Special Services 5,842

Housing Subsidy 8,058

Depreciation, Impairment & Interest 14,601

Provision for Bad Debts 205

Subtotal HRA Expenditure 57,839

Dwelling Rents -52,049

Garage & Other Property Rents -2,299

Service Charges - General -9,519

Adjustments & Financing Items 6,640

Amenities shared by whole community -499

Interest Received -113

Subtotal HRA Income -57,839

Total Housing Revenue Account 2011/12 0

Unavoidable Budget Movements #1Unavoidable Budget Movements £000s

Payroll & Oncost Inflation 289

Non-Pay Inflation 357

Self-Financing: Increased interest payable on borrowing 10,781

Self-Financing: Increased provision for depreciation 2,000

Removal of one-off budgets & savings from base -320

Provision for increase in repairs contract prices 1,867

Additional heating maintenance costs 485

Increased costs for CDM & EPC fees 155

Unavoidable Budget Movements #2

Unavoidable Budget Movements £000s

Increase in compensation, decant, and legal expenses 65

Additional balcony & asphalt maintenance costs 75

Additional tower block ventilation system costs 80

Additional structural testing costs 50

Net transfers (should be nil) 1

Other unavoidable growth 357

Total Unavoidable Budget Movements 16,244

Increased Income

Increased Income £000s

Proceeds of 8.6% rent increase 2012/13 -4,040

Increased tenants' service charge income -502

Other rental income increases -90

Increased leaseholders' contributions to Major Works costs -371

Increase in costs recharged to General Fund -235

Other increases in income -186

Total Increased Income -5,423

Reduced Income

Reduced Income £000s

Sheltered Housing Service Review - reduced service charges 253

Other reductions in income 116

Total Reduced Income 369

SavingsSavings £000s

Transformation & Efficiency Programme (Approved) -86

Self-Financing: Removal of negative Housing Subsidy -8,058

Self-Financing: Reduced revenue contribution to capital -3,682

CLT Budget Scrutiny savings -154

Sheltered Housing Service Review - reduced service costs -594

Maintenance to be funded from capital programme -355

Miscellaneous efficiencies & budget reductions -356

Total Savings -13,285

Recommended GrowthRecommended Growth £000s

   

Cyclical Painting Programme 1,395

Disabled Adaptations facilitation 70

Additional Loft Insulation 40

Provision for corporate priority objectives 341

Increase in contribution to HRA balance 430

   

Total Recommended Growth 2,276

HRA Budget 2012/13 (draft)HRA Budget 2012/13 (draft) £000s

Repairs & Maintenance 15,499

Rents, Rates, & Other Property Costs 5,987

General Management 10,965

Special Services 5,699

Housing Subsidy 0

Depreciation, Impairment & Interest 27,419

Provision for Bad Debts 215

Subtotal HRA Expenditure 65,783

Dwelling Rents -56,088

Garage & Other Property Rents -2,383

Service Charges - General -9,785

Adjustments & Financing Items 3,358

Amenities shared by whole community -735

Interest Received -150

Subtotal HRA Income -65,783

Total Housing Revenue Account 2012/13 0

Any Questions?

Responses to any questions regarding the draft HRA Budget

2012/13