Purpose

The report seeks agreement from the Executive
to recommend to Council the approval of the revised budget for the Housing Revenue
Account for 2025/26, plus the base budgets, fees and charges and rent increases
for 2026/27.

 

The Executive recommended, and the Council approved,
in February 2025, the base budget and rent increase for 2025/26, for Housing
Revenue Account (HRA) services.

 

The report sets out some revisions to the
Housing Revenue Account revised budget for 2025/26 and proposes the base budget
for 2026/27. The housing capital programme and financing for the years 2025/26
to 2029/30 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 2026/27.

 

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 dept repayment put aside in
these years.  However surpluses that do
arise will be considered for this purpose.

 

Council budgets are susceptible to change in
the level of expenditure and income caused by factors inside and outside of 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 20 February 2026 that:

 

(a)  rents be approved for Council
Dwellings as set out in paragraph 40 with effect form 1 April 2026;

 

(b)  rents for Council garages be increased
by 4.8% with effect from 1 April 2026;

 

(c)  the revised budget for 2025/26 be approved;

 

(d)  the base budget for 2026/27 be
approved;

 

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