Agenda item

RECOMMENDED that: -

(a)    Revenue budgets for 2023/24 and provisionally for 2024/25 to 2027/28 are set using the following principles:

(i)           That rents for general needs, sheltered and shared ownership accommodation are increased by 7 per cent from 3 April 2023, in line with the national rent cap announced by the Department of Levelling Up, Housing and Communities.  

(ii)         That rents for all accommodation on re-lets continue to be set at the formula rent, increased by 11.1 per cent, from 3 April 2023, in line with the Department of Levelling Up, Housing and Communities Policy statement on rents for social housing.

(iii)        That rents for garages, garage bases and parking plots are increased by 10 per cent from the 3 April 2023.

(iv)        That leasehold services are charged to leaseholders in line with estimated costs from 3 April 2023.

(v)         That the changes to service charges are agreed as set out in appendix 2 from 3 April 2023, and that the service charge cap for new service charges in Bournemouth continues to be set at £5.00 for a further year.

(vi)        That the annual bad debt charge is maintained at £0.4 million.

(vii)      That the depreciation budget is set at £11.79 million.

(viii)    That HRA reserve should be maintained at a minimum level of 5 per cent of total expenditure at £1.98 million in line with good practice.

(b)    Capital budgets for 2023/24 and provisionally for 2024/25 to 2027/28 are set using the following principles:

(i)           That the planned maintenance programme as set out in Appendix 5 is agreed.

(ii)         That the major project capital programme as set out in Appendix 6 is noted.

(iii)       That 2023/24 budgets of £0.4 million for feasibility works and £3 million for the acquisition of individual properties (“Acquire and Repair”) are approved.

(c)    The Delivery Plan for BCP Homes to support the key principles for the HRA and the Council’s Corporate Strategy are agreed as set out in Appendix 7.

Councillor Rampton presented the report and recommendations as set out on the agenda.

In doing so, points raised included:

·     The budget as proposed was mindful of the impact of the cost-of-living pressures on residents, and the increased responsibilities and regulation forthcoming to officers;

·     Increases had been minimised, and adjustments to address discrepancies across the area would be forthcoming following public consultation;

·     The budget included investment in preventative measures to address damp and mould;

·     Residents were to be involved through new engagement structures, including the Housing Advisory Board, scrutiny panels and the Residents’ Committee;

·     New tenant satisfaction measures would come into force in April 2023.

The proposal was seconded by Councillor P Broadhead.

A number of Councillors spoke in debate of the proposal. Points raised included:

·     Concerns over the impact of what was felt to be a significant increase to charges to Council tenants;

·     Concerns over new tenants being subject to a higher rental increase, resulting in a potential two-tier rental system and a subsequent divide amongst residents using the same service;

·     The report’s suggestion that engagement with tenants was deemed as low priority;

·     Whether Councillors would be able to discuss the matter in more detail, if necessary.

In response, Councillor Rampton advised:

·     Not applying the proposed increase would reduce income to the HRA by £10m in future years. This £10m was to be used to reinvest in services for residents;

·     National policy dictated that the 7% cap for increases did not apply to those residents moving house or new tenants;

·     Measures were in place to support those residents who would struggle with the increase.

Council moved to a vote where the motion as follows was carried.

RESOLVED that:-

(a)     Revenue budgets for 2023/24 and provisionally for 2024/25 to 2027/28 are set using the following principles:

(i)     That rents for general needs, sheltered and shared ownership accommodation are increased by 7 per cent from 3 April 2023, in line with the national rent cap announced by the Department of Levelling Up, Housing and Communities.

(ii)    That rents for all accommodation on re-lets continue to be set at the formula rent, increased by 11.1 per cent, from 3 April 2023, in line with the Department of Levelling Up, Housing and Communities Policy statement on rents for social housing.

(iii)   That rents for garages, garage bases and parking plots are increased by 10 per cent from the 3 April 2023.

(iv)   That leasehold services are charged to leaseholders in line with estimated costs from 3 April 2023.

(v)    That the changes to service charges are agreed as set out in appendix 2 from 3 April 2023, and that the service charge cap for new service charges in Bournemouth continues to be set at £5.00 for a further year.

(vi)   That the annual bad debt charge is maintained at £0.4 million.

(vii)  That the depreciation budget is set at £11.79 million.

(viii)That HRA reserve should be maintained at a minimum level of 5 per cent of total expenditure at £1.98 million in line with good practice.

(b)    Capital budgets for 2023/24 and provisionally for 2024/25 to 2027/28 are set using the following principles:

(i)     That the planned maintenance programme as set out in Appendix 5 is agreed.

(ii)    That the major project capital programme as set out in Appendix 6 is noted.

(iii)   That 2023/24 budgets of £0.4 million for feasibility works and £3 million for the acquisition of individual properties (“Acquire and Repair”) are approved.

(c)     The Delivery Plan for BCP Homes to support the key principles for the HRA and the Council’s Corporate Strategy are agreed as set out in Appendix 7.

Voting: For – 54; Against – 6; Abstentions - 10

(Councillor T Trent declared an interest in respect of his renting of a garage from the Council.)