10
The Finance Director explained the report which was the final budget monitoring report for the 2021/22 financial year and the position that will be used to inform the production of the statutory accounts. The report and appendices provided the detail of the outturn position for the Housing Revenue Account plus the capital programme in relation to the housing stock.
The outturn position showed a surplus of £824,000 compared to the originally budgeted deficit of £2.784 million, resulting in a net underspend of £3.4million. The main reason for the underspend was largely due to a lower amount being required to fund the capital programme in the year from revenue, due to slippage in the capital projects, totalling £1.4m underspend.
In addition, there had been an increase in the rent income in the year largely due to reduced right to buy sales in the current and prior years compared to the level assumed when the budget was set, thereby delivering additional income of £903,000 in the year.
The impact of the reduced borrowing in the year had also resulted in an underspend of £361,000 in the year.
The Finance Director explained that Section 3 of the report outlined the outturn position on the capital programme. Where programmed work had not been completed in the year, the remaining project budgets had been carried forward to 2022/23. Whilst the previous update to the capital programme assumed total spend of just over £10 million, the outturn position was just under £8m.
The updated capital programme was included in the report at appendix D and as part of approving the updated programme as outlined at section 4.2, Members were asked to approve the addition of £125,000 to the Housing transformation project budget to ensure that there is sufficient capacity to deliver this project.
The report also commented on the right to buys completed in the year which was 18, which whilst it was double that for last year, is still lower than the level before 2020/21.
Overall, the Housing revenue account had delivered a surplus for the year of £824,000 which means the HRA reserve to be carried forward into 2022/23 was just under £9.4million.
Councillor Paul Hammond queried the figure in paragraph 3.6 of the report and it was clarified that this should read as £2.7m.
Councillor Wainwright referred to the massive underspend while the housing stock was getting in a worse state and repairs not being carried out. The Strategic Director advised that the Asset Management Strategy would be reported back to Committee in September.
RESOLVED:
That the Housing and Neighbourhoods Committee recommend to Council the following:
The outturn position for the Housing Revenue Account for 2021/22 as included in the report and appendices
The updated 2022/23 HRA revenue and expenditure budget as detailed at Appendix C
The updated 2022/23 HRA capital programme and associated financing of the as detailed within the report and at Appendix D.