Housing Revenue Account and Draft HRA 5 year revenue budget

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Dear Haringey Borough Council,

1. Please explain why the 2022/23 HRA dwellings rent income was revised downwards from £89,825,000 (as agreed by Full Council on 1 March 2022) to £86,598,000 in the ‘2022/23 Finance Update Quarter 2 (Period 6)’ Report at p 121 in the Cabinet papers for 6 December 2022: a very large difference of £3,227,000 – or if we take into account the void loss allowed for in the original budget, £2,329,000)?

2. When did the above revision take place?

3. For the year 2023/24, the Five year HRA income projection shows a 1.9% void loss allowance compared to the usual 1%. Why is this?

4. Looking at the Draft HRA 5 year revenue budget table, on p 190 at para 9.49 of the ‘Budget 2023/24 and MTFS 2023-2028’ Report at Cabinet on 6 December 2022, I have these four questions about the assumptions used:

• Please give: The housing stock total (permanent homes not hostels or temporary accommodation) used for each of the five years.

• Does the stock total used include properties void and awaiting demolition (i.e., long term permanent voids)?

• Please give: The average council rent used for each of the five years.

• Please give: The RPI or CPI inflation figure used for each of the five years (please specify whether RPI or CPI).

Yours faithfully,

Paul Burnham

Nirmla Chumber, Haringey Borough Council

1 Attachment

Dear Paul Burnham,

 

Your Freedom of Information Request Ref: LBH/13400022

 

I acknowledge your request for information received on 30 November 2022.

 

This information request will be dealt with in accordance with the Freedom
of Information Act 2000 and a response will be issued by 30 December 2022.

 

Yours sincerely,

 

 

Nirmla Chumber

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Haringey Council

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Paul Burnham left an annotation ()

response by 30 December 2022

Andrew Adegboye, Haringey Borough Council

Dear Mr Burnham,

Your Freedom of Information Act Request - Ref: LBH/13400022

 

Thank you for your request for information received on 30 November 2022,
in which you asked for the following: 

1.    Please explain why the 2022/23 HRA dwellings rent income was revised
downwards from £89,825,000 (as agreed by Full Council on 1 March 2022) to
£86,598,000 in the ‘2022/23 Finance Update Quarter 2 (Period 6)’ Report at
p 121 in the Cabinet papers for 6 December 2022: a very large difference
of £3,227,000 – or if we take into account the void loss allowed for in
the original budget, £2,329,000)?

2.    When did the above revision take place?

3.    For the year 2023/24, the Five year HRA income projection shows a
1.9% void loss allowance compared to the usual 1%. Why is this?

4.    Looking at the Draft HRA 5 year revenue budget table, on p 190 at
para 9.49 of the ‘Budget 2023/24 and MTFS 2023-2028’ Report at Cabinet on
6 December 2022, I have these four questions about the assumptions used:

·         Please give: The housing stock total (permanent homes not
hostels or temporary accommodation) used for each of the five years.

·         Does the stock total used include properties void and awaiting
demolition (i.e., long term permanent voids)?

·         Please give: The average council rent used for each of the five
years.

·         Please give: The RPI or CPI inflation figure used for each of
the five years (please specify whether RPI or CPI).

 

My response is as follows:

 

1.    The HRA dwelling income was not revised downwards. It is just a
presentation issue. The format for presenting the budget information is
different from that for presenting the quarterly monitoring report. The
dwelling rent in the budget includes lease rental income from CBS
(£2,329m) while in the quarter 2 report, it was presented on different
lines for monitoring purposes. The void loss of £898,000 shown in a
separate line in the budget report, was netted off the dwelling rent in
the quarter 2 report. 

2.    There was no revision. Both reports are presented in different
formats. Quarterly report is presented in line with the cost centre
responsibility.

3.    The void allowance projection is an assumption in time, to reflect
the level of void anticipated based on current void performance. We
revisit this every year and quarterly during the year.

4.    The assumptions used in the draft HRA 5 year revenue budget table of
the Budget and MTFS report are as follows:

·         Housing stock numbers (permanent homes) used for each of the
five years are:

2023-24 2024-25 2025-26 2026-27 2027-28
Units Units Units Units Units
15,338 15,728 16,231 16,744 17,176

 

·         Housing stock numbers above include void properties but exclude
properties earmarked for demolition.

 

·         Average weekly council rent used for each of the five years are:

2023-24 2024-25 2025-26 2026-27 2027-28
£118.22 £124.13 £126.62 £129.15 £131.73

 

·         Inflation figures used in each of the five years are:

INFLATION
DRIVERS 2023-24 2024-25 2025-26 2026-27 2027-28
Rent CPI
inflation 7% 5% 2% 2% 2%
Repairs &
Housing
Management
CPI
inflation 5% 5% 2% 2% 2%

 

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Yours sincerely,

Andrew Adegboye

Senior Finance Manager - Financial Planning

Finance Business Partnering | Housing & Chief Accountant

Haringey Council

Level 2, River Park House, 225 High Road, London N22 8HQ

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Dear Andrew Adegboye,

Thank you for your response.

I would be grateful if you could provide your answer in PDF form - this would help me to be clear about some of the tabulated information.

Thanks again

Yours sincerely,

Paul Burnham

Andrew Adegboye, Haringey Borough Council

Thank you for your message. I am on annual leave and will not have access
to emails until I return to work on 3rd January 2023.

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Andrew Adegboye, Haringey Borough Council

1 Attachment

Dear Mr Burnham,

I attach my response in PDF format as requested.
I hope this is helpful.
Yours sincerely,

Andrew Adegboye
Senior Finance Manager - Financial Planning
Finance Business Partnering | Housing & Chief Accountant
Haringey Council
Level 2, River Park House, 225 High Road, London N22 8HQ
E. [email address]

www.haringey.gov.uk
twitter@haringeycouncil
facebook.com/haringeycouncil

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