1. HRA Draft Budget 2012/13 Proposed significant changes Housing Briefing 19 January 2012

2. Content The Housing Revenue Account HRA Budget 2011/12 Unavoidable Budget Movements Increased Income Reduced Income Savings Recommended Growth HRA Budget 2012/13

3. The Housing Revenue Account Introduced in the Local Government and Housing Act 1989 LG&H 1989: “sums falling to be credited or debited in respect of houses and other buildings which have been provided under Part II of the Housing Act 1985” DoE Circular 8/95: “the HRA should be primarily a landlord account, containing the income and expenditure arising from a housing authority's landlord functions”

4. HRA Budget 2011/12 £000s Repairs & Maintenance13,322 Rents, Rates, & Other Property Costs6,176 General Management9,635 Special Services5,842 Housing Subsidy8,058 Depreciation, Impairment & Interest14,601 Provision for Bad Debts205 Subtotal HRA Expenditure57,839 Dwelling Rents-52,049 Garage & Other Property Rents-2,299 Service Charges - General-9,519 Adjustments & Financing Items6,640 Amenities shared by whole community-499 Interest Received-113 Subtotal HRA Income-57,839 Total Housing Revenue Account 2011/120

5. Unavoidable Budget Movements #1 Unavoidable Budget Movements£000s Payroll & Oncost Inflation289 Non-Pay Inflation357 Self-Financing: Increased interest payable on borrowing10,781 Self-Financing: Increased provision for depreciation2,000 Removal of one-off budgets & savings from base-320 Provision for increase in repairs contract prices1,867 Additional heating maintenance costs485 Increased costs for CDM & EPC fees155

6. Unavoidable Budget Movements #2 Unavoidable Budget Movements£000s Increase in compensation, decant, and legal expenses65 Additional balcony & asphalt maintenance costs75 Additional tower block ventilation system costs80 Additional structural testing costs50 Net transfers (should be nil)1 Other unavoidable growth357 Total Unavoidable Budget Movements16,244

7. Increased Income £000s Proceeds of 8.6% rent increase 2012/13-4,040 Increased tenants' service charge income-502 Other rental income increases-90 Increased leaseholders' contributions to Major Works costs-371 Increase in costs recharged to General Fund-235 Other increases in income-186 Total Increased Income-5,423

8. Reduced Income £000s Sheltered Housing Service Review - reduced service charges253 Other reductions in income116 Total Reduced Income369

9. Savings £000s Transformation & Efficiency Programme (Approved)-86 Self-Financing: Removal of negative Housing Subsidy-8,058 Self-Financing: Reduced revenue contribution to capital-3,682 CLT Budget Scrutiny savings-154 Sheltered Housing Service Review - reduced service costs-594 Maintenance to be funded from capital programme-355 Miscellaneous efficiencies & budget reductions-356 Total Savings-13,285

10. Recommended Growth £000s Cyclical Painting Programme1,395 Disabled Adaptations facilitation70 Additional Loft Insulation40 Provision for corporate priority objectives341 Increase in contribution to HRA balance430 Total Recommended Growth2,276

11. HRA Budget 2012/13 (draft) £000s Repairs & Maintenance15,499 Rents, Rates, & Other Property Costs5,987 General Management10,965 Special Services5,699 Housing Subsidy0 Depreciation, Impairment & Interest27,419 Provision for Bad Debts215 Subtotal HRA Expenditure65,783 Dwelling Rents-56,088 Garage & Other Property Rents-2,383 Service Charges - General-9,785 Adjustments & Financing Items3,358 Amenities shared by whole community-735 Interest Received-150 Subtotal HRA Income-65,783 Total Housing Revenue Account 2012/130

12. Any Questions? Responses to any questions regarding the draft HRA Budget 2012/13