hra draft budget 2012/13 proposed significant changes housing briefing 19 january 2012
TRANSCRIPT
Content• The Housing Revenue Account• HRA Budget 2011/12• Unavoidable Budget Movements• Increased Income• Reduced Income• Savings• Recommended Growth• HRA Budget 2012/13
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”
HRA Budget 2011/12HRA Budget 2011/12 £000s
Repairs & Maintenance 13,322
Rents, Rates, & Other Property Costs 6,176
General Management 9,635
Special Services 5,842
Housing Subsidy 8,058
Depreciation, Impairment & Interest 14,601
Provision for Bad Debts 205
Subtotal HRA Expenditure 57,839
Dwelling Rents -52,049
Garage & Other Property Rents -2,299
Service Charges - General -9,519
Adjustments & Financing Items 6,640
Amenities shared by whole community -499
Interest Received -113
Subtotal HRA Income -57,839
Total Housing Revenue Account 2011/12 0
Unavoidable Budget Movements #1Unavoidable Budget Movements £000s
Payroll & Oncost Inflation 289
Non-Pay Inflation 357
Self-Financing: Increased interest payable on borrowing 10,781
Self-Financing: Increased provision for depreciation 2,000
Removal of one-off budgets & savings from base -320
Provision for increase in repairs contract prices 1,867
Additional heating maintenance costs 485
Increased costs for CDM & EPC fees 155
Unavoidable Budget Movements #2
Unavoidable Budget Movements £000s
Increase in compensation, decant, and legal expenses 65
Additional balcony & asphalt maintenance costs 75
Additional tower block ventilation system costs 80
Additional structural testing costs 50
Net transfers (should be nil) 1
Other unavoidable growth 357
Total Unavoidable Budget Movements 16,244
Increased Income
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
Reduced Income
Reduced Income £000s
Sheltered Housing Service Review - reduced service charges 253
Other reductions in income 116
Total Reduced Income 369
SavingsSavings £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
Recommended GrowthRecommended Growth £000s
Cyclical Painting Programme 1,395
Disabled Adaptations facilitation 70
Additional Loft Insulation 40
Provision for corporate priority objectives 341
Increase in contribution to HRA balance 430
Total Recommended Growth 2,276
HRA Budget 2012/13 (draft)HRA Budget 2012/13 (draft) £000s
Repairs & Maintenance 15,499
Rents, Rates, & Other Property Costs 5,987
General Management 10,965
Special Services 5,699
Housing Subsidy 0
Depreciation, Impairment & Interest 27,419
Provision for Bad Debts 215
Subtotal HRA Expenditure 65,783
Dwelling Rents -56,088
Garage & Other Property Rents -2,383
Service Charges - General -9,785
Adjustments & Financing Items 3,358
Amenities shared by whole community -735
Interest Received -150
Subtotal HRA Income -65,783
Total Housing Revenue Account 2012/13 0