The report set out the background and recommendation to adopt a formal written Service Charge Policy, following the approval of the Service Charge Strategy 2017 (“the Strategy”) by the Committee (June 2017).

The Strategy concerned was the introduction of stand-alone service charging, relating to the servicing of Council owned HRA blocks/schemes (circa 48 blocks).  

The Service Charge Policy 2017-2020 (“the Policy”) provided the framework for achieving the key aims contained within the adopted Strategy. 

Cllr Hossack MOVED and Cllr Poppy SECONDED the recommendation in the report and following a discussion a vote was taken by a show of hands and it was:

RESOLVED UNANIMOUSLY 

That the Committee formally approve the introduction of the Service Charge Policy(Appendix A).

REASONS FOR RECOMMENDATION

Option 2 (within the report) was recommended as the most financially viable option for the Council and supported the already adopted Service Charge Strategy.  It also ensured that Financial Services could code changes accurately against the Estates where services had been provided. 

Through adopting a policy to ensure that a tailored service charge was billed and accounted for separately to rent charges it would allow for a lessening of the economic impact of the 1% Government rent reductions and loss of related grants.  

Taking no further action would fail to advance corporate priorities and would de-stabilise financial resources. 

Adopting the Policy would provide ongoing direction for both customers and the Council when implementing Service Charge setting each year.  It was also consistent with legal and regulatory requirements.