Agenda and decisions

Venue: Salford Suite, Salford Civic Centre, Chorley Road, Swinton

Contact: Liz Wright, Democratic Services Officer 

Items
No. Item

1.

Apologies for absence

2.

Declarations of interest

3.

Minutes of the previous meeting pdf icon PDF 243 KB

Minutes of the meeting held on the 13.12.22.

4.

Rent and Service Charge Setting for 2023/24 and future years - council owned stock managed by Pendleton Together and the Duchy Caravan Park pdf icon PDF 334 KB

The report for the Strategic Director of Place.

Decision:

Salford City Council - Record of Decision (Cabinet)

I, Paul Dennett, City Mayor, in consultation with the Cabinet and in exercise of the powers contained within the City Council Constitution do hereby approve:

 

Rent and Service charge Setting for 2023/24 and future years:

 

1.    An increase of 7% for rents in 2023/24 for the Pendleton PFI stock

 

2.    An increase of RPIX +1% with a 4% floor for rents in 2024/25 and future years for the Pendleton PFI stock

 

3.    Adjustments to Pendleton PFI service charges in line with the costs of providing those services as detailed in section 3 of the report

 

4.    An increase of 12.4% for rents in 2023/24 for the Duchy Caravan Site, in line with RPI

 

5.    The implementation of amended service charges to tenants at Duchy Caravan Site during 2023/24, subject to a detailed further report for decision by the Lead Member for Housing, Property and Regeneration

The Reasons are:

·         The PFI rent setting for 2023/24 is in line with the Autumn Statement from Government that said rent increases in the social rented sector will be capped at 7% for 2023/24.

·         The Government’s decision to cap rents at 7% followed a consultation on social housing rents with local authorities and registered providers. Salford City Council responded to this consultation, which did not include pitch fees by urging Government to freeze rents in the sector with this rent freeze fully funded by Government through compensation to local authorities and registered providers. The modelling undertaken by Government showed that a significant beneficiary of any rent cap would be the Treasury at a time when funding is desperately needed to help local authorities and Registered Providers meet the increased burdens of building safety, day to day repairs, retrofitting their stock and delivering net zero carbon standards. The City Councils suggestion was for a fully funded rent freeze with Government ensuing that council and housing associations received the income they would have received if rents had been increased by CPI +1%.This was unfortunately, not accepted.

·         The decision to increase rents by 7% and for future increases to be set at RPIX +1% with a 4% floor in 2024/25 and future years was not taken lightly but was based on financial modelling that showed that this option ensured the on-going viability for the Housing Revenue Account. The PFI management fee which the council has to pay is linked to RPIX and bringing future rent increases in line with RPIX helps to ensure financial viability. Other options have been considered but result in either the HRA entering an unlawful deficit or a very small surplus over the life of the HRA Business Plan which did not provide sufficient financial resilience.

·         Pendleton Together and the Council have reviewed the current service charges and have proposed revised charges based upon actual costs. The actual costs of services will vary from block to block depending upon services received.  The table below identifies the average service charge per block to show the  ...  view the full decision text for item 4.

5.

Any other urgent business