The Cabinet of Redbridge Council met on Tuesday 12 February 2019, approving the budget for the upcoming financial year, including a Council Tax increase, and adopting new strategies for private sector housing. The meeting also saw decisions made regarding the acquisition of properties for affordable housing and investment purposes.

Revenue and Capital Budget and Council Tax 2019/20

The Cabinet recommended to the full Council the approval of the Revenue Budget for 2019/20, which included a proposed increase in the general Council Tax of 2.99% and a 1.0% precept for Adult Social Care. This brings the total Council Tax increase for a Band D property to £37.55. The Cabinet also approved changes to Fees and Charges and recommended the approval of the refreshed Medium Term Financial Strategy (MTFS) for 2019/20 to 2023/24. The report noted that the Council had balanced its budget for 2019/20 and outlined required savings of £21.388m in 2020/21 and a further £11.763m for the three years from 2021/22 to 2023/24.

The Cabinet also recommended approval of new capital proposals totalling £208.687m for 2019/20 to 2023/24 and a revised capital programme of £646.639m. The Treasury Management Strategy, Policy Statement, Minimum Revenue Provision (MRP) policy, Prudential Indicators, and Annual Investment Strategy for 2019/20 were also recommended for approval by the full Council.

In relation to Council Tax and Business Rates, the Cabinet noted the provisional Greater London Authority (GLA) Band D precept and the Council Tax Base. It was recommended that the Council approve the increase in the Council Tax premium for long-term empty properties. Furthermore, the Cabinet recommended that rents for housing properties held within the General Fund be reduced by 1% in line with Government policy, while rents for employee accommodation would increase by inflation (2.6%). Tenant service charges for non-sheltered housing units would increase by an average of 4.16%, and charges for sheltered housing units would decrease by an average of 0.64%. Garage rents were set to increase by 5%, and car parking space charges by 2.4%.

Private Sector Housing Strategy

The Cabinet adopted the Private Sector Housing Strategy 2019-22, which aims to improve the management and conditions of privately rented properties, enhance the health and wellbeing of people with disabilities, and bring empty homes back into use. Alongside this, the Private Sector Housing Enforcement Policy 2019-22 and a revised Private Sector Renewals (Financial Assistance) Policy 2019-22 were also adopted. The latter policy details how funds are administered for grants to bring empty properties back into use and remove home hazards, with the caveat that discretionary grant assistance may be withdrawn at any time.

Review of Housing Revenue Account Finances and HRA Budget 2019/20 - 2023/24

The Cabinet agreed the Housing Revenue Account (HRA) budget for 2019/20, including revenue and capital. Capital expenditure approval of £14.889m was granted for works to existing stock, and £141.907m for new affordable housing from 2019/20 to 2021/22. Affordable rents for new builds in the HRA will be set at no more than 80% of gross market rent, while those funded by the GLA will be at London Affordable Rent Levels. Rents for vacant HRA properties will be re-let at the July 2015 rent level minus required reductions, and all HRA properties will see a 1% decrease in rent for the next year.

Specific charges were also adjusted: the standing charge for heating for residents on the Orchard Estate will decrease to £3.47 per week. HRA Tenant Service Charges for non-sheltered housing units (excluding heating and hot water) will increase by an average of 5.3% for the Orchard Estate, and by an average of 4.16% for other residents. Charges for sheltered housing units, including tenant service charges, heating, hot water, and water and sewerage, will decrease by an average of 0.64%. HRA garage rents will increase by 5%. The Cabinet also agreed to establish a Discretionary Loans Policy for resident leaseholders facing major repairs bills and a facility to defer leaseholder loans and waive interest in specific circumstances.

Acquisition of Street Properties for Affordable Homes

The Cabinet agreed to establish a wholly owned company limited by shares to acquire and manage approximately 300 private rented properties. This initiative aims to reduce the number of households in temporary accommodation. The Council will be the sole shareholder, with authority delegated to the Shareholder Reference Group for the establishment and operation of the company. The recommended delivery model was agreed, with authority for the final funding decision delegated to the Corporate Director of Resources in consultation with the Leader. The intention to evaluate potential benefits to the pension fund was also noted.

Acquisition of Non-Financial Assets - Property Investment 2 and 3

The Cabinet agreed to the acquisition of two properties as part of the Council's strategy to diversify its property portfolio and generate income. These acquisitions are intended to support the Council's regeneration and growth agenda, with a focus on income-generating assets beyond the currently retail-heavy portfolio. The acquisitions are to be completed within the £100m fund allocated for investment assets, aiming to generate approximately £7.5m over the lifetime of the MTFS up to 2022/23. Authority was delegated to the Operational Director Regeneration, Property and Planning to finalise terms and proceed with the acquisitions.

Acquisition of Site for Site Assembly

The Cabinet agreed to the acquisition of a neighbouring site that is considered critical for the optimum development of an initial acquisition site and will support the Council's broader regeneration ambitions for Ilford. The Council has secured funding through the GLA's affordable housing programme, which requires a commitment to providing an additional 126 affordable homes. Authority was delegated to the Operational Director Regeneration, Property and Planning to conclude negotiations.

Other Matters

The Cabinet also agreed to the Forward Plan for March to June 2019 and recommended a Calendar of Meetings for the Municipal Year 2019/20 to the Council, with proposed changes to the commencement time of meetings to 6:30 pm. The report on the implications for Redbridge of Britain's Exit from the European Union was noted. Consultation on admission arrangements for 2020/21 for community primary and secondary schools was agreed, including proposed reductions to admission numbers for Cleveland Road and Mayespark Primary Schools. The Fair Access Protocol and proposed Schemes for Primary and Secondary Co-ordination for 2020/21 were also agreed.

The Cabinet also noted the Budgetary Control Report for Quarter 3 (Month 9), which detailed the financial performance to 31 December 2018 and the forecast outturn for 2018/19. This included a forecast overspend of £6.358m on the General Fund revenue budget and a balanced forecast for the Dedicated Schools Grant (DSG). The Housing Revenue Account forecast an underspend of £1.720m. Approval was given for slippage of £34.907m on the capital programme.

Finally, the Cabinet agreed to set rents for pitches at Northview Caravan Site at £103.61 per week, effective from 1 April 2019.