Neighbourhood Services Committee - 31/10/2022

At a MEETING of the NEIGHBOURHOOD SERVICES COMMITTEE held remotely on 31st October, 2022.

Present:-

BAILIES

COUNCILLORS

Councillor Heather ANDERSON, Convener, in the Chair.

The minute of meeting of this Committee of 26th September, 2022 was held as read.

Unless marked thus * all items stand delegated.

I DECLARATION OF INTEREST

In the interests of transparency, Councillors McHugh and Finnegan advised the Committee that they both had tenancies with Dundee City Council.

II REVIEW OF RENTS AND OTHER HOUSING CHARGES

There was submitted Report No 261-2022 by the Executive Director of Neighbourhood Services setting out the proposed rent and other housing charges for the financial year 2023/2024 and seeking approval to consult with tenants on these proposals.

The Convener, seconded by Bailie Dawson, moved that the Committee:-

(i) approve that the Executive Director of Neighbourhood Services consults with tenants for a two-month period on the proposed options for the rent increase for 2023/2024 as outlined in this report;

(ii) note the Provisional Revenue Budgets for 2024/2025 and 2025/2026 detailed in Appendix 1 and the indicative rent increases for each of these years outlined in paragraph 8.5;

(iii) note the proposed other housing charges included in Appendix 2 to this report that would become effective from 3rd April 2023;

(iv) agree that only the rent options which have been the subject of consultation with tenants over the 2-month period be used to set the 2023/2024 Housing Revenue Account (HRA) Revenue Budget and rent and other housing charges;

(v) note the impact of any rent cap beyond 31st March, 2023 under the Cost of Living (Tenant Protection) (Scotland) Bill, and, if the rent cap is extended then officers will bring a report to Committee on the implications arising from this; and

(vi) to delegate authority to the Executive Director of Corporate Services to amend the Hardship Policy to include those who are experiencing hardship but are not in receipt of either Housing Benefit or Universal Credit - Housing Costs.

As an amendment, Councillor Shears, seconded by Councillor McHugh, moved that the Committee:-

(i) notes that the cost of a rent freeze 2023/2024 has been calculated as 1.6m and this would create a deficit within the HRA;

(ii) notes that in Scottish Government HRA guidelines The HRA is also not permitted to show a deficit at the end of the financial year. If this occurs, authorities are required to transfer funds from the General Fund to cover this deficit;

(iii) notes that as at March, 2022 there are currently accumulated net surpluses of 9.86m from the operation of the HRA Account;

(iv) notes that officers do not recommend the use of this fund surpluses to fund recurring costs and they should be held for one-off costs;

(v) agrees to consult tenants on the basis that rents for Council tenants and charges detailed in Appendix 2 should be frozen for 2023/2024, and the budget be balanced by funding 1.6m of repairs from the Renewal and Repair Fund which currently stands at 9.86m;

(vi) note the impact of any rent cap beyond 31st March, 2023 under the Cost of Living (Tenant Protection) (Scotland) Act, and, if the rent cap is extended then officers will bring a report to Committee on the implications arising from this;

(vii) to delegate authority to the Executive Director of Corporate Services to amend the Hardship Policy to include those who are experiencing hardship but are not in receipt of either Housing Benefit or Universal Credit - Housing Costs; and

(viii) officers to bring a report to the next Neighbourhood Services Committee explaining the criteria to receive a hardship payment.

On a division, there voted for the motion - the Convener, Lord Provost Campbell, Depute Lord Provost Cordell, Bailies Dawson, Roberts and Sawers and Councillors Alexander, El-Nakla, Flynn, Hunter, Lynn, Rome, Short, Smith and Tolland (15); and for the amendment - Bailies Keenan, Wright, Macpherson and Scott and Councillors Cruickshank, Finnegan, McHugh, McIrvine, Malone, Shears, Coleman, Crichton and Duncan (13) - whereupon the motion was declared carried.

Heather ANDERSON, Convener.