Purpose

The Cabinet will be asked to
consider the Housing Revenue Account (HRA) budget and rent levels
for Council properties for 2026/27 and also to approve the rolling
30-year HRA Business Plan setting out how the Council intends to
fund its stock investment, estate regeneration and new build
plans.

Content

Cabinet resolved to:
 
(i)  Note the Housing
Revenue Account (HRA) budget forecast for 2025/26;
 
(ii)  Agree the proposed
increases to rents and some service charges in 2026/27 to support
the financial resilience of the HRA in maintaining and improving
council homes, regenerating estates and developing new housing;
 
(iii)  Agree the proposed
reductions in certain other service charges to ensure that
reductions in the costs of these utilities to the Council are
passed on to tenants;
 
(iv)  Agree:
 
a) 
the proposed budget allocations for 2026/27 within the HRA set out
in the report, including the £44m capital programme;
b) 
the five-year capital programme for 2026-30, providing a total of
£233.3m investment in the housing stock to meet compliance
and Decent Homes standards; and
c) 
the proposed adjustments to reserves to balance the need for
prudential financial management with the urgent requirement to
upgrade assets.
 
(v)  Note the 30-year business
plan for the HRA based on current financial assumptions which
ensures a) that balanced budgets are achieved in every year as
required, b) that the HRA remains on a sustainable path in terms of
both borrowing and debt repayment throughout the period, and c)
that appropriate amounts are spent in every year on maintaining and
improving housing assets and providing efficient and high-quality
services to tenants and leaseholders.