Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Salford City Council - Record of Decision (CABINET)
1. An increase of 2.7% for rents in 2020/21 for housing stock owned by the City Council. The same level increase to be applied to garage rents and caravan site fees.
2. Adjustments to service charges to reflect the actual cost of providing those services.
In line with government rent setting methodology the rental increase is based upon the CPI inflation measure at September 2019 plus 1%. Additional rental income will help to meet the costs included within the Housing Revenue Account (HRA) business plan which must be balanced on a 30 year basis. The resulting rents are below Local Housing Allowance rates which are used to calculate entitlement to housing benefits.
Pendleton Together have reviewed the current charges and adjusted service charges to reflect the actual costs of services and will vary from block to block depending upon services received. The table below identifies the average rental charge combined with the average service charge per block to show the variation across blocks.
The council have in place a number of schemes to help people. BetterOff Salford will help people to find out about benefit entitlement and provide help with 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.
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 subsiding the cost of services to individual tenants.
Rent increase is based upon government formula of CPI plus 1% and service charges reflect actual costs. The rent increase reduces the financial risk of being unable to balance the long term HRA business plan.
The council is required to set a balanced HRA budget.
Paul Hutchings, Strategic Finance Manager, tel. no. 0161 793 2574
Procurement advice obtained.
Andrew Leigh, Head of Housing tel no 0161 793 2155
Joanne Hardman, Chief Finance Officer tel. no. 0161 793 3156
* This document records a key decision, but the matter was not included in the Council's Forward Plan and it has been dealt with under the emergency procedure.
* This decision is urgent and is not subject to call-in, in accordance with the Decision Making Procedure Rules
FOR DEMOCRATIC SERVICES USE ONLY
Publication date: 11/02/2020
Date of decision: 11/02/2020
Decided at meeting: 11/02/2020 - Cabinet
Effective from: 20/02/2020