Purpose

The report seeks agreement from
the Executive to recommend to Council the approval of the revised budget for
the Housing Revenue account for 2024/25, plus the base budgets, fees and
charges and rent increases for 2025/26.

 

The Executive recommended, and
the Council approved, in February 2024 the base budget and rent increase for
2024/25 for Housing Revenue Account (HRA) services.

 

The report sets out some
revisions to the Housing Revenue Account revised budget for 2024/25 and base
budget for 2025/26.  The housing capital
programme and financing for the years 2024/25 to 2028/29 is also included for
information as this impacts on the revenue budget.  The report also proposes the increases in
rents and fees and charges for 2025/26.

 

The report highlights the issues
affecting the Housing Revenue Account. 
In particular it highlights the increased expenditure needed to maintain
the Council’s housing stock in the next 2 years.  This will mean that we will not be able to
continue with our debt repayment put aside in these years.  However, any surpluses that do arise will be
considered for this purpose.  Due to
these pressures, increased budget monitoring has been introduced for this period
and a specific HRA Opportunities Plan has been drawn up which contains actions
that have been identified to help reduce net expenditure.

 

Council budgets are susceptible
to change in the level of expenditure and income caused by factors inside and
outside the Council’s control.  Scenario
analysis has been carried out to indicate the effect on housing balances of
changes in the level of expenditure and income. This has been included to
support the need to maintain a prudent level of reserves and a working balance.

Decision

RESOLVED that the Executive
agrees and recommends to the meeting of the Council to be held on 14 February
2025 that:

 

(a)  rents
be approved for Council Dwellings as set out in paragraph 28 with effect from 1
April 2024;

 

(b)  rents
for Council garages be increased by 2.7% with effect from 1 April 2025;

 

(c)  the
revised budget for 2024/25 be approved;

 

(d)  the
base budget for 2025/26 be approved; and

 

(e)  the
Fees and Service Charges at confidential Appendix E be approved.