Purpose

The report presents to Cabinet, the updated
Budget 2025-26, Medium Term Financial Plan 2025-29 and 30 year
Business plan for the Housing Revenue Account.

Content

RESOLVED
that:
 
1.1      Cabinet approve the
Housing Revenue Account 2025-26 budget as detailed within Appendix
1, which will reduce the balance on the HRA reserve from
£24.379 million at 31 March 2025, to £16.030 million at
31 March 2026; and note the indicative budgets to 2028-29 which
will reduce the balance of the HRA reserve to £12.178
million;??
 
1.2      Cabinet note that from 1
April 2025, social housing rent will be increased by Consumer Price
Index (CPI) plus 1.00% as per the previously agreed Rent Standard.
The budget detailed in Appendix 1 assumes that rents will rise by
CPI 1.70% plus 1.00% with recoverable service charges also rising
by CPI plus 1.00% for the period 1 April 2025 to 31 March
2026;
 
1.3      Cabinet approve the
increase of 2.70% for housing rents from 1 April 2025 in line with
the Government rent standard;?
 
1.4      ?Cabinet approve the
increase of 2.70% for housing service charges from 1 April
2025;
 
1.5      Cabinet approve the
Non-Recurrent Growth Item of £1.000 million for additional
resources to tackle the backlog in the turnaround of void
properties (detailed in point 6.11);
 
1.6      Cabinet approve the
Non-Recurrent Growth Item of £0.600 million for demolition
costs of unused dwellings (detailed in point 6.11);
 
1.7      Cabinet approve the
Non-Recurrent Growth Item of £0.400 million for additional
consumable materials (detailed in point 6.11);
 
1.8      Cabinet approve the use of
£0.400 million from the Rent Hardship Fund Reserve, to
contribute to the additional non recurrent growth. (detailed in
point 6.6);
 
1.9      Cabinet approve the use of
£2.003 million from the HRA Reserve to fund non-recurrent
growth and to contribute to the ongoing pressure within the budget
and to ensure the HRA sets a balanced budget (detailed in point
6.13);
 
1.10    Cabinet approve the estimated pay
inflationary increase for 2025-26 of 3.00% totalling £0.723
million, which includes the impact of increased national insurance
contributions (detailed in point 6.9);?
 
1.11    Cabinet approve the Non-Pay Inflation
Schedule for 2025-26 totaling
£0.298 million (detailed in point 6.9);?
 
1.12    Cabinet approve the Recurrent Growth
as follows:
 
a)       Additional Stock
Condition Survey budget of £0.098 million from 2025-26 to
cover cyclical costs of carrying out surveys on current properties
to inform future capital expenditure (detailed in point
6.10).?
b)       Additional budget of
£0.100 million for electrical testing to comply with The
Regulator of Social Housing (detailed in point 6.10);?
 
1.13    Cabinet approve the expenditure plan
relating to £36.347 million which has been set aside over the
4-year period 2025-26 to 2028-29 in the HRA Capital programme to
invest in Affordable Housing. Details are set out in Appendix
1;?
 
1.14    Cabinet approve the expenditure plan
relating to £48.200 million which has been set aside over the
4-year period 2025-26 to 2028-29 in the HRA Major Repairs Programme
to invest in continued improvement to the HRA housing stock.
Details are set out in Appendix 1; and?
 
1.15    Cabinet note the indicative 30-year
Housing Revenue Account business plan as detailed within Appendix
1.