Brent Council Tax to rise 6% to £1924.45 for Band D, council rents up by 7%, district network energy up by eye watering 196%

 Brent Cabinet will be putting forward a budget to Full Council which includes an overall Countil Tax increase of 6%, equating to £109.20 increase on a Band D property to £1924.45. The amounts for all the bands are shown below:

Recognising that the rise will hit residents the report to Cabinet outlines current support:

While it is acknowledged that increasing Council Tax will be difficult for some households, it should also be recognised that the Council continues to invest in the Council Tax Support scheme, which provides over £32m of support for around 28,000 households who are financially vulnerable. This support will be supplemented in 2023/24 from the Government’s £100m Council Tax Support Fund, which will enable Brent to reduce bills for Council Tax Support claimants by up to a further £25. In addition, the Council’s Resident Support Fund has made available additional funds for residents who are having difficulty due to unforeseen financial circumstances as a result of COVID-19 and the cost of living crisis.

The Council Tax increase includes an increase  of 4.99% (the government maximum) by Brent and 9.7% by the GLA.

 

Council Rents Rise by 7%

The Council will be raising council rents by 7% as set out below:

The rents for residents of the former Stonebridge HAT, now managed by the Hyde Group also rise:

 The gross rent for NAIL (New Accommodation for Independent Living) includes service charges and rises by 7%.

 

 

Service charges - some increase by up to 100%
 

 Rent of course is not the only charge to tenants. There are additional charges which vary according to the accommodation with, for example, some of the new properties having a concierge.

There is no increase for grounds maintenance, laundry and TV ariel but other charges rise, particulalrly those hit by the energy crisis. The heating and hot water rise is actually more but has been capped by the council at 100%.

 

 

District Heating Network in South Kilburn charges up by 196%

Wembley Matters has previously reported on concerns over District Heating Charges in the light of surging energy costs. The rise in tariffs justifies the concern.

 

 'Savings' NOT 'cuts'?

The Scrutiny Committee's Recommendations LINK  are included on the agenda but do not appear to have affected the report, which is not surprising given the time scale. Cuts by the Labour council are still referred to as 'savings' although the Tory Chancellor does make cuts:

The additional resources provided in the provisional local government finance settlement have resulted in a reduction in the savings requirement for 2023/24 and 2024/25 to £21.0m, profiled £13.5m in 2023/24 and £7.5m in 2024/25. This enables the deferral of £4.5m of the savings previously identified for 2023/24 to be deferred to 2024/25. Based on current estimates, this leaves a budget gap of £3m in 2024/25. However, this settlement also deferred many of the spending cuts that the Chancellor of the Exchequer had set out as necessary in his Autumn Statement to return the nation’s finances to a sustainable position over the medium term. Therefore, it remains likely that further savings will be required from 2025/26 onwards and this will be kept under review and reported to Cabinet throughout 2023/24.

 

School budget deficits and potential staffing cuts

School budget funding comes directly from government according to a formula and for local authority schools is distributed via the local authority based on decisions by the Schools Forum. Academies and Free schools received funding directly from the government.The budget report notes the difficulties some schools are currently facing previously covered on Wembley Matters.  This will result in staff cuts and there is a possibility of school amalgamations or reductions in forms of entry:

The number of Brent schools experiencing difficulties in 2022/23 has increased with 67% projecting an in-year deficit. 23% of these schools’ plan to use over 50% of reserves to balance their budgets in 2022/23. Schools are feeling the impact of rising inflationary costs, including increases in energy prices alongside teachers’ pay increasing by 5% in 2022/23 and starting salaries rising by 8.9% to £30k. A number of Brent schools are also experiencing falling rolls and as a result have had significant reductions in funding. This is requiring schools to make strategic decisions to mitigate the impact of this, including the consideration of staffing restructures. Alongside measures to support schools, such as capping admission numbers, the Local Authority has established a School Place Planning Working Group to review the sustainability of provision in primary planning areas.

 

Use of Strategic Infrastructure Levy for major projects

The amounts allocated are not  listed here but I will endeavour to find more details. I am particularly interested in the allocation to the College of North West London for its new building in Wembley Park which followed a deal with the council.

S106/Community Infrastructure Levy (CIL) will be utilised to undertake major infrastructure projects meeting the conditions or terms for funding. The capital programme includes CIL funded schemes totalling £46m. The total CIL allocation includes contributions towards the fit out cost of 3 medical centres, a new facility in Wembley for the College of North West London, the new Morland Gardens educational facility, a new pedestrian and cycle bridge in Alperton and contributions towards community facilities in Stonebridge, Preston Community Library, Learie Constantine Centre and Brent Indian Community Centre

 

Full Council Decision

Given the top down nature of the Cabinet system of local government  and the huge Labour majority, adoption of this budget by Full Council is inevitable.  The Tory and Lib Dem groups may put forward alternatives and they will be voted down.

 

FULL DETAILED OFFICERS' REPORT

Green's rallying speech at London March for Homes

Labour campaigns on housing at scene of their 'No Common People' development crime

It seems rather inappropriate for Brent Labour Party to set up a stall this Saturday coming outside Sainsbury's in Willeasden Green to campaign over housing. They will be accompanied by Claude Moraes MEP and other candidates for the European elections.

Claude and his friends would do well to pop along the road to the building site which used to be the Willesden Green Library. Brent  Labour Council gave away the land to developers who are building luxury flats in exchange for a small cultural centre.

The agents marketing the flats in Singapore boasted in their advertising (in case foreign buyers should be tainted by the poor) that none of the flats were affordable housing or for key workers. LINK

Confusion over Council's policy on rent rises

I live on a Brent Housing Partnership estate which has a mixture of flats, maisonettes, terraced houses and town houses. These are occupied by a mixture of 'right to buy' freehold owners (or purchasers from an original right to buy owner), leaseholders, BHP tenants, private tenants and probably some sub-lets.

Two bedroomed flats and houses are privately let for between £800 and £1,200 a month, social housing tenants pay much less.

Some of the privately owned homes have been fitted with double glazing while the BHP properties have not. Energy bills for the latter are therefore much higher.

There is considerable and much appreciated green space on the estate.

I give this as background to the Housing Assess Management Strategy Report that is going to the Brent Executive tomorrow.  The report contains a mixture of measures which involves  disposing of some properties and selling the freehold on some blocks.  It involves plans to build a small number of new units of existing estates, initially between 70 and 100, to cater for larger families and a long-term 7 year plan for 1,000 new 'affordable' homes.  Importantly there are plans for refurbishment of existing stock. Clearly new homes and refurbishment will be very welcome.

The plans will be financed by the sell-offs, some borrowing and controversially rent increases.The latter has caused concern amongst Labour Party members as well as tenants because the documents going to the Executive seem to indicate that existing tenants' rents will increase over the next 5 years to 'converge' at 80% of market rents, which by some definitions is an 'affordable rent' - a figure the Council has challenged in the past..  At the same time the new properties will be immediately let at an affordable rent with some caveats (see extract below).

The concern is that the convergence strategy will result in a likely doubling of rent for existing tenants over the next 5 years at a time when incomes are static but the cost of living is rising and benefits have been cut.

What I and others have been trying to work out from the documentation going before the Executive is whether that is what is really envisaged and hopefully, as a result of protests due to representations that will be made, it will become clearer. The figures quoted do not seem to equate to a doubling of rent.

Meanwhile here is an extract from the Appendices that readers

The extract below from the Appendices sets out the rent strategy and I leave readers to try and interpret wht it means concretely:

Rent Policy

Strategic Approach

For rents to continue to increase in line with the  rent convergence regime- a maximum annual increase in 2014 of RPI +0.5% plus £2 per week and from 2015 CPI+ 1% plus £2 per week for existing tenants - subject to any direction by Government

Following rent convergence for the annual increase  to be set at CPI+1%

For properties to be re-let at target rents

For consideration to be given annually to restraint in rent increases for 4-bedroom and larger properties in order to assure affordability under the overall benefits cap

For new-build and newly-acquired properties (except where required for decant) to be let at affordable rents in line with the thresholds set out within the Council’s Tenancy Strategy.

Context

Rents are the primary income to the HRA business plan and provide the funding to support stock investment and for new development.

In recent years the Council has increased rents in  line with the government’s rent convergence regime. The government has recently issued guidance

that rent convergence should end from 2015/16 at which point the majority of the HRA stock will not have achieved convergence. Currently the Council retains the discretion to not follow the recent guidance. Further clarification of the

position by Government is expected by early 2014 and account will need to be taken of this.

The government has also issued recent guidance that from 2015 rent increases will be linked to a different inflation index – and be based on CPI plus 1% rather than RPI plus 0.5% as previously.

Approach

In order to provide a secure basis for the funding of the Asset Management Strategy, a rent policy for the next five-year period will operate. The policy will be for rents for existing tenants to continue to rise in line with the principles of the government’s previous Rent Convergence regime unless government directs otherwise. For 4-bed and larger units rent increases may be constrained in order to assure affordability under the Overall Benefits Cap.

In order to support viability, new homes will be let at Affordable Rents. These will be limited to varying percentages of the market-rent depending on the size of the unit in order to assure affordability for those affected by the Overall Benefits Cap.

Source: http://democracy.brent.gov.uk/documents/s20059/rg-hra-app1.pdf

Join in Brent Housing Action this weekend

 The recently formed Brent Housing Action Group, a broad based organisation addressing the current housing crisis will be out and about this weekend:

SUNDAY MAY 26th Leafleting and petitioning on Chalkhill Estate

Meet 12 noon at the bus stop on Forty Lane outside ASDA, opposite Brent Town Hall
Please text Sarah on 07951 084 101 if you are coming.

MONDAY MAY 27th Picnic and street party in support of the Counihan-Sanchez Family Campaign 11 am - 1 pm 15 Rose Gardens, Ealing, W5 4JU

Brent Housing Action launched to campaign on housing emergency

After a successful strategy meeting last night Brent Housing Action has been formed and a website and Facebook group have been set up.

The website states:

Brent Housing Action was formed by a group of residents, campaigners and community organisations in Brent in April 2013.

We want to support our friends, our neighbours and one another to fight against cuts to vital benefits and to the threat to our homes an communities. We want our council to support us in challenging changes which might mean the difference between home and homelessness for over 600 Brent families. And we need your support.

The next meeting with be on Tuesday 23rd April 7pm at Mencap High Road Willesden,
 

https://www.facebook.com/groups/brenthousingaction/

http://brenthousingaction.wordpress.com/

Brent housing and welfare campaign meeting tonight

Brent housing crisis strategy meeting on Tuesday March 19th

Overcrowding is one response to high rents

A message from Brent Fightback

Everyone is now aware of the deepening crisis in Housing in London.  We are aiming to bring together people from across our community for a more united response: individuals (especially those with housing problems), Tenants and Residents Associations, housing and advice workers, community and council representatives, trade unions and political organisations.

We want to hold an initial strategy meeting so we can begin to: 

• build connections and share ideas/ experiences about the challenges that are hitting residents in Brent,
• discuss what we can do to raise awareness of what all these changes mean,
• help people who find themselves struggling to cope; make their voice heard and develop strategies to meet these attacks
• develop a campaign around policies which would begin to meet real housing needs in the borough

We hope you will be able to attend and publicise this meeting to others who may want to be involved:

6.30pm-8.00pm , Tuesday 19^th March 2013,

Brent Mencap offices 379-381 High Road, Willesden, London, NW10 2JR

Contacts: Robin Sivapalan, robsivapalan@hotmail.com, 07974 331 053 and Ken Montague, kenmontague@msn.com

(some of) what’s happening now: ·         Inflated rents and house prices, huge shortage of social housing, overcrowding… ·         …reduction in the Local Housing Allowance (housing benefit for private accommodation), the Universal Credit benefit cap… Brent will be the worst affected area if the Universal Credit cap is introduced. ·         …’Bedroom Tax’, charging Council Tax on Benefits, “Affordable” rent being defined as 80% of the market rate…. ·         ….Cuts to legal aid, advice, support and language services… ·         …Low pay, rogue landlords and mortgages companies, loan sharks…

Brent Fightback is an alliance of workers and service users campaigning against privatisation and cuts to jobs and services.

Brent's unaffordable rents - have your say

Click on image to enlarge

Darren Johnson, Green Party Member of the London Assembly, has published an interactive website LINK which demonstrates the difficulty of finding a home at an affordable rent across the London boroughs.

An affordable  rent is defined as one which takes up no more than 35% of take-home pay after tax. Based on a working week of 48 hours (the maximum allowed under the Working Time Directive) spread over five days of 9.6hr shifts, you should have earned enough to pay the rent at the end of Tuesday.

In the London Borough of Brent you would have to work until the end of Wednesday on the National Minimum wage for 18-20 year olds (£4.98 an hour) to rent a room in a shared home. However, on the London Living Wage (£8.30/hr) supported by the Green Party, you could afford this by the end of Tuesday.

For an adult on the National Minimum wage needing a 2 bedroomed home, it is just not possible even if all the wages went on rent. If they were paid the London Living Wage they would not have earned enough to pay the rent until the end of Friday i.e. 'extremely unaffordable'.

Currently these unaffordable rents are topped up through housing benefit, the Local Housing Allowance, but these are now being capped and cut, making it more difficult to find affordable homes to rent when with a job and benefits.

Go to the website for more details and to feed back your views on the issue to Darren Johnson