Appendix - North Kesteven District Council

G Resources
Revenue Funding
Housing Revenue Account
The Management of the Council’s housing stock is operated through a separate account, known as the Housing
Revenue Account. This meets all the day-to-day costs of operating the service and receives the rent income, either
paid directly by tenants or through housing benefit.
The Government has introduced a formula approach for the setting of rents, known as ‘Rent Restructuring’, where
the rent is set in relation to a market rent for the stock adjusted to take account of local wages. This formula aims
to see all rents for public sector housing, whether provided by Registered Social Landlords or Councils, based on
the same principle.
A ten year period has been allowed for this transition. In the District overall, rent income is not dramatically
affected by these changes, but overall rents are expected to increase by an average of 3% a year as a result of
this formula.
Currently in the year 2005/6, the HRA has an annual spend of £9.8m (2005/6). Rent income generates around
£9.77m and the HRA holds balances approaching of approximately £0.5m.
The HRA Business Plan provides a summary of HRA income and expenditure from 2005/6 to 2007/8. An analysis
of operating expenditure undertaken by the Council’s consultants through the stock options appraisal demonstrates
that over the next 30 years the HRA will continue to remain in surplus without savings having to be made to the
current level of service. The HRA Business Plan also details a table showing income and expenditure of the HRA
over 30 years.
The HRA spends approximately £2.35m on repairs and maintenance and contributes £0.8m towards the capital
programme. Again, based on the consultant’s projections, the viability of this is not affected over the next 30 years.
A brief summary of the HRA programme for 2006/7 is as follows:
• Total expenditure - £10,034,900
• Repairs and maintenance expenditure (included in above): £2,442,900
• Rental income: £9,959,200
• Total income: £10,020,000
• Estimated working balance at end of year: £570,000
A summary of the position over the years 2003 – 2008 is shown overleaf in table E.
General Fund Services
The Council’s General Fund provides funding for some of the key services listed in this Strategy. The following shows a
breakdown of funding between 2003-2008.
Housing Strategy 2005 - 2008 40