Purpose

The Housing Revenue Account (HRA) represents
the Council’s obligation to account separately for income and
expenditure relating to its social housing stock – including
day-to-day management and maintenance, as well as major works,
stock improvement and increasing the supply of Council social
housing.
The HRA Business Plan is a financial model for
the Housing Revenue Account, and is updated annually to reflect
changing economic assumptions, government policy, and landlord
proposals.
 
The report will summarise these changes, and
ask for Cabinet approval of the proposed increases to rents for
social housing tenants, in line with government policy; to agree
proposed increases to service charges; and to agree the HRA
Business Plan report.

Decision

For the reasons set out in this report and its
appendices, Cabinet RESOLVED to Agree to:
 

i) 
The updated Housing Revenue Account (HRA) Business Plan as set out
in Appendix 1.

ii) 
A 4.8% rent increase on all Council-owned rented accommodation
(including homes managed under a PFI contract) with effect from
1st  April 2026 2.3. To agree
a 4.8% increase to tenant service charges with effect from 1 April
2026 2.4. To agree the Rent Setting Policy included at Appendix 2
to this report.

 
Alternatives
considered
 

a) 
The HRA Business Plan is a live document and reflects an updated
position and current assumptions, reflecting economic circumstances
and the Council’s wider plans, including new homes and
regeneration schemes. Large schemes such as these are subject to
continuous development and evolution – the Business Plan is
regularly updated to reflect these changes.

b) 
As noted in this report, the operating and regulatory environment
is changing significantly, and the Business Plan will be updated
regularly to take account of these.