{meta} Decision - Pendleton Together Rent and Service Charge 2019/20

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

Executive Decision

 

Urgent Executive Decision

 

Request to a Scrutiny Chair that an Urgent Executive Decision be made without being published in the Forward Plan, and / or that and the Executive Decision be exempt from Call-In for Scrutiny

 

Decision maker

 

City Mayor following consultation with Cabinet

Nature of the decision

 

Pendleton Together Rent and Service Charges 2019/20

Non-confidential reports

Can be made available to the public

Report published on 12th February 2019

Confidential reports

Containing confidential or exempt information

 

Reason for confidentiality

 

 

Intended date of decision

 

20th February 2019

Officer contact details

For any further information

Name:

Tel:

Email:

Joanne Hardman

0161 793 3156

Joanne.hardman@salford.gov.uk

Has the decision been published in a Forward Plan?

Yes

Reasons for special urgency such that this cannot be published in a Forward Plan

 

Is exemption from call-in for scrutiny needed?

Yes

Advice as to how any delay will seriously prejudice the legal or financial position of the Council

Call in is due to end on 27th February 2019 which is the same date as the Council’s budget setting meeting. The inability to approve the rent and service charge changes as part of the Council’s budget report would mean that tenants would have insufficient notice of changes to rents and service charges and proposed changes would not be implemented from the start of the financial year.

Scrutiny Chair

Who has agreed the decision is reasonable and urgent

Name:

Councillor Jolley

Signed:

Councillor Jolley

Date:

18th February 2019.

 

Request prepared by:

Joanne Hardman

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salford City Council - Record of Decision

 

I, Paul Dennett, City Mayor, in exercise of the powers contained within the City Council constitution, do hereby approve;-

 

  • An increase of 3.4% for rents in 2019/20 for housing stock owned by the City Council.  The same level increase to be applied to garage rents and caravan site fees.

 

  • Adjustments to service charges to reflect the actual cost of providing those services.

 

The reasons are: The 3.4% increase in rental charges is based upon the CPI inflation measure at September 2018 plus 1%, reflecting the government’s rent setting methodology.  It should be noted that homes included in PFI schemes are excluded from the Welfare Reform and Work Act 2016 which applies to other registered providers within the local area. Additional rental income will meet the costs included within the HRA business plan which must be balanced on a 30 year basis.  These include inflationary increases associated with the PFI scheme. The resulting rents are below Local housing allowance rates which is used to calculate entitlement to housing benefit.

 

Service charges have been adjusted to reflect the actual costs of services and will vary from block to block depending upon services received.

 

The table below shows the average rental charge combined with the average service charges per block to show the average variation across blocks.

 

Average rent and service charge increase

 


 

Average

Average

 

 

 

Charge

Charge

Variation

Variation

 

2018/19

2019/20

 

 

 

£

£

£

%

 

 

 

 

 

High Rise

104.16

108.04

3.88

3.7

 

 

 

 

 

Low Rise

84.14

86.91

2.77

3.3

 

 

 

 

 

Sheltered

98.53

102.39

3.86

3.9

 

 

 

The council have in place a number of schemes to help people. Our BetterOff Salford website will help people to find out about benefit entitlement and provide help in applying online.  Staff at our gateways can also offer face-to-face support. The council administers a Discretionary Housing Payment scheme which can provide short term support to alleviate hardship and Salford Assist can provide help with essential items to people in crisis.

 

Options considered and rejected were: Good practice requires a comparison of the costs of service provision with the income generated from service charges with the aim of ensuring that the charging policy is fair and equitable and that general rental income is not subsidising the cost of services to individual tenants.

 

 

 

Assessment of Risk:  Low

 

Source of funding: Rents and service charges are accounted for within the ring-fenced Housing Revenue Account.

 

Legal advice: The Council is required to set a balanced HRA budget

 

Financial advice: Report prepared by the finance team.

 

Contact Officer:  Paul Hutchings         Tel No: 0161 793 2574

 

*           This decision is not subject to consideration by another Lead Member

*           This decision is not subject to call in.

 

Signed:  Paul Dennett, City Mayor

 

Dated: 21 February 2019

 

 

*           This decision was published on 21 February 2019

*           This decision will come in to force on publication.

 

 

 

 

Publication date: 21/02/2019

Date of decision: 20/02/2019

Decided at meeting: 20/02/2019 - City Issues Briefing

Accompanying Documents: