{meta} Decision - Pendleton Together Rent and Services Charges 2021/22

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision (Cabinet)

I, Councillor Tracy Kelly, Statutory Deputy City Mayor, in consultation with the Cabinet and in exercise of the powers contained within the City Council Constitution do hereby approve:

 

Pendleton Together Rent and Services Charges 2021/22

  1. An increase of 1.5% for rents in 2021/22; and
  2. Adjustments to service charges in line with the costs of providing those services

The Reasons are:

·         In line with government rent setting methodology the rental increase is based upon the CPI inflation measure at September 2020 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 service charge per block to show the variation across blocks.

 

 

Average Charge 2020/21

Average Charge 2021/22

Variation

£

Variation

%

High Rise

23.31

24.13

0.82

3.52

Low Rise

4.62

4.79

0.17

3.68

Sheltered

24.51

28.61

4.10

16.70

 

·         Residents of the Pendleton Tower blocks affected by the fire safety works and programme to replace the cladding have been provided with energy support payments of £25 per month during the winter period.

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 subsiding the cost of service to individual tenants.

Assessment of Risk:

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 source of funding is: Housing Revenue Account

Legal Advice obtained: Ann Warburton, Solicitor

The Council is required to set a balanced HRA budget.  The proposed increase in rents and adjustment to service charges is lawful.

Financial Advice obtained: Paul Hutchings, Strategic Finance Manager

The rents and service charges proposed within this report would be a significant source of income for the HRA.

Procurement Advice obtained: N/A

HR Advice obtained: N/A

Climate Change Advice obtained: N/A

The following documents have been used to assist the decision process: N/A

Contact Officer:  Andrew Leigh, Head of Housing / Paul Hutchings, Strategic Finance Manager                        

Telephone number: Andrew Leigh 0161 793 2155 / Paul Hutchings 0161 793 2574

(Please delete from the list below any which are not relevant).

·         This document records a key decision which was included in the Council’s Forward Plan

·         The appropriate scrutiny to call-in the decision is the Growth and Prosperity Scrutiny Panel     

 

Signed:   Councillor T Kelly                                      Dated:    10.02.21                                                           Statutory Deputy City Mayor

 

For Democratic Services use only

 

This decision was published on 10.02.21                                            

This decision will come in force at 4.00 p.m. on 17.02.21                                                   unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 10/02/2021

Date of decision: 09/02/2021

Decided at meeting: 09/02/2021 - Cabinet

Effective from: 18/02/2021

Accompanying Documents: