Agenda item

The Leader and Housing Portfolios

To consider report FIN/511 of the Head of Corporate Finance.

RESOLVED

That Cabinet requests Full Council approves that:

a)            the appropriation of all garages from the HRA to the General Fund as at 1 April 2021, with the exception of those garages that are included within a Crawley Homes’ tenancy agreement

b)            when any of the garages currently included within a Crawley Homes’ tenancy agreement falls outside of that tenancy, the Head of Corporate Finance in consultation with the Head of Crawley Homes be given delegated authority to use the powers under Section 122 of the Local Government Act 1972 to transfer such garages from the HRA to the General Fund.

Reasons for the Recommendations

Property has to be accounted for within the HRA if it is currently provided under Part II of the 1985 Housing Act.  Where property no longer meets that purpose, the Council should consider removal from the HRA.

The proposed transfer will reduce the debt on the HRA and fund the building of new homes.

The proposed transfer will reduce the budget gap in the General Fund as laid out in the Budget Strategy.

The Cabinet Member for Housing presented report FIN/511 of the Head of Corporate Finance.  The report proposes the appropriation of garages from the HRA to the General Fund. It was explained that with the garages being assets they could be taken out of the ring-fenced HRA and moved to the General Fund, thus bring in a further revenue to the Council. In return there would be a contribution to the HRA of £17.6m to invest in new homes or to pay off existing debt.

Councillor Irvine reassured the Cabinet that the proposal would not mean tenants would have to pay more for their rents as they were capped or the repairs budget either. Councillor Irvine asked that his thanks to officers and his Shadow Councillor Millar-Smith be recorded over their support on this decision.

Councillors Mullins and Lamb spoke as part of the discussion on the report. Councillor Lamb during the debate moved a proposed amendment adding a further recommendation –

Recommendation c) Develop an appropriate pricing and fees regime for the letting of garages in consultation with the Leader, and for this to take effect from 1st April 2021.

Councillor Crow was invited to speak on the item. He confirmed that he and his party would be supporting the proposals at Full Council as it would bring in a significant income to the General Fund.

A recorded vote was taken on the proposed additional recommendation – Recommendation C, in accordance with the Council’s Virtual Committee Procedure Rules.  The names of the Councillors voting for and against the recommendations, along with any abstentions, are recorded as set out below:

For the recommendations:

Councillors Irvine, Jhans, Lamb, Mullins and P Smith (5)

Against the recommendations:

None.

Abstentions:

None.

RESOLVED

That inclusion of Recommendation C be carried

A recorded vote was taken on the recommendations as amended, in accordance with the Council’s Virtual Committee Procedure Rules.  The names of the Councillors voting for and against the recommendations, along with any abstentions, are recorded as set out below:

For the recommendations:

Councillors Irvine, Jhans, Lamb, Mullins, and P Smith. (5)

Against the recommendations:

None.

Abstentions:

None.

RESOLVED

That the Cabinet request Full Council to approve:

a)            the appropriation of all garages from the HRA to the General Fund as at 1 April 2021, with the exception of those garages that are included within a Crawley Homes’ tenancy agreement

b)            that when any of the garages currently included within a Crawley Homes’ tenancy agreement falls outside of that tenancy, the Head of Corporate Finance in consultation with the Head of Crawley Homes be given delegated authority to use the powers under Section 122 of the Local Government Act 1972 to transfer such garages from the HRA to the General Fund.

c)            develop an appropriate pricing and fees regime for the letting of garages in consultation with the Leader, and for this to take effect from 1st April 2021.

Reasons for the Recommendations

Property has to be accounted for within the HRA if it is currently provided under Part II of the 1985 Housing Act.  Where property no longer meets that purpose, the Council should consider removal from the HRA.

The proposed transfer will reduce the debt on the HRA and fund the building of new homes.

The proposed transfer will reduce the budget gap in the General Fund as laid out in the Budget Strategy.