5 September 2012 - East Devon District Council

Housing Apprentice (6 months) 0 2
Property & Asset Team saving due to
vacancies
(11) (25)
Total 59 (491)
Under the new self financing regime the HRA is now funding its own capital
programme and capital variations have been reflected in the above figures.
3.2 The variations identified above will have the following effect on the Housing
Revenue Account Balance:
£
Housing Revenue Account Balance
(01/04/12)
(623,967)
Predicted budget requirement as above (2,224,760)
Predicted HRA Balance (31/03/12) (£2,848,727)
The recommended level for the HRA balance is currently £2.1m. The predicted
balance is above the recommended level.
3.3 The Government has changed the legislation regarding sales of council houses to
accommodate the anticipated higher level of sales as a result of the increase in
discount from £30,000 to £75,000. The Council has signed an agreement with the
Government which enables us to retain capital receipts from Right To Buy sales
received under the new legislation, after certain specific reductions, to fund the
provision of new social housing up to a maximum of 30% of the cost, the remaining
70% must be funded through borrowing and/or use of the HRA surplus.
The capital programme now includes £0.859m to purchase 11 houses at Morton
Way, Axminster for which funding is expected to come from Right to Buy capital
receipts, a S106 commuted sum and borrowing from the PWLB.
4. Capital Programme Position up to Month 4.
4.1 The following tables currently estimate the total required from the Capital Reserve
as £2.409m; comprising £1.970m to support the capital programme and £0.439m to
support schemes originally budgeted as part of the capital programme but due to
their nature are technically revenue.
After allowing for the members decision to transfer the General Fund surplus in
2011/12 into the Capital Reserve this leaves a predicted balance on the capital
reserve at the end of 2012/13 of £1.866m.
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