Content

RESOLVED:
 
Cabinet is recommended to:
 
1. 
To approve
the HRA budget proposals as set out in Section 6 and Appendix
1.
 
2. 
To approve
the increase in rent of 7.7% in line with the Social Housing
Regulator’s rent ceiling and agree that rents will increase
on average by £8.91 from £115.68 per week to
£124.59 per week with effect from Monday 1st April
2024.
 
3. 
To approve
the increase in HRA fees and charges as set out in Appendix
2.
 
4. 
To approve
the increase in tenant service charges as set out in paragraph
6.14; and the service charges for the Concierge service as set out
in paragraph 6.16.
 
5. 
To approve
the increase in Travellers charges at 7.7% as set out in paragraph
6.21.
 
6. 
To approve
the increase in Shared Ownership rent at 7.7% as set out in
paragraph 6.22.
 
7. 
To
delegate to the Group Director of Finance and Corporate Resources
in consultation with the Cabinet Member for Housing Services and
Resident Participation and Cabinet Member for Finance, Insourcing
and Customer Services the setting of communal heating charges to
reflect the unit costs of utilities.
 
8. 
To agree
the Housing Capital Programme budget as set out in paragraph 6.33
to be included in the overall Council Capital budget for approval
as part of the Council Budget and Council Tax Setting Report to be
approved at February 2024 Cabinet.
 
REASONS FOR DECISION
 
Section 76 of the Local Government and Housing Act 1989
requires Local Authorities with a Housing Revenue Account (HRA) to
set a budget for the account that avoids a deficit, whilst using
robust and valid assumptions.
 
Furthermore, there is a statutory requirement for the
Council to prepare a 30 Year Business Plan for the HRA on an annual
basis. The purpose of this exercise is to keep the long-term
financial viability of the HRA under regular review.
 
The report also provides the approval needed to set HRA
tenant rents and other charges for the financial year 2024/25. The
Council is required by law to give tenants at least 28 days’
notice of any variation to the rent charged.
 
DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND
REJECTED
 
The HRA covers all income and expenditure relating to the
portfolio of housing stock owned by the Council. It is required by
the Local Government and Housing Act 1989 to be ring-fenced from
the Council’s General Fund. The legislation specifies that
only expenditure relating to the Council’s landlord role can
be charged to the HRA and, by extension, funded by the rents
charged to tenants. The Council has a legal duty to ensure that the
account remains solvent and to prepare a long-term business plan
annually that keeps this under regular review.
 
Preparing the 30-year HRA Business Plan involves a
long-term assessment of the funding needed to deliver landlord
duties alongside wider strategic housing objectives. This involves
detailed modelling of operating resource requirements, capital
investment plans and external funding streams against wider
environmental factors such as macroeconomic assumptions and
potential legislative changes.
 
The  2024/25 budget has been
built from the 30 Year HRA Business Plan and reviewing the base
budget, including current forecasts of items of essential
expenditure, maintenance and investment to preserve the housing
service and its assets.
 
Alternative rent increases were considered in setting the
budget, but any reduction to the rent rise as set by the Regulator
of Social Housing in the Rent Standard would result in additional
savings that would impact on services to tenants, and substantial
savings for the Government in the subsidy of Housing Benefit. A
reduction in income would also have a long term impact on future
rent levels and income and the ability to deliver front line
services and invest in the Housing stock.