Content

Salford City
Council - Record of Decision (Cabinet)
 
I, Paul Dennett, City Mayor, in consultation with
the Cabinet and in exercise of the powers contained within the City
Council Constitution do hereby approve:

 

1.   
An increase of 4% for rents in 2026/27 for the Pendleton Private
Finance Initiative (PFI) stock
 

2.   
An increase of Retail Price Index excluding Mortgage Interest
(RPIX) +1% with a 4% floor for rents in 2027/28 and future years
for the Pendleton PFI stock
 

3.   
Adjustments to Pendleton Private Finance Initiative (PFI) service
charges in line with the costs of providing those services as
detailed in section 3 of the report
 

4.   
Subsidy for gas utilities at Lombardy Court of
c£3.6k
 

5.   
To cap the security service fee at the 2025/26 levels due to
improvements being required to the service to meet the expected
service level – this will be a cost to the HRA of
£43,250 in 2026/27.
 
The Reasons
are:

·        
A rent freeze was considered as an option, but
resulted in the HRA entering an unlawful deficit over the life of
the HRA Business Plan.

·        
The viability of the Housing Revenue Account through
to 2043/44 has also had to consider the additional cost
implications associated with the Building Safety Act, Consumer
Standards and contract expiry costs. 
Whilst it is the council’s desire to keep rents as low as
possible, we need to prudently manage the Housing Revenue Account
which can’t legally go into deficit or be cross subsided as
determined by the Local Government & Housing Act 1989.
The rent increase is not funding any of
the current cladding replacement works.

·        
Pendleton Together and the Council have reviewed the
current service charges and have proposed revised charges based
upon actual and estimated costs. The cost of services will vary
from block to block depending upon services received. 

·        
A number of mitigations have been put in place to
ensure residents can maximise their income and access additional
support where required.

·        
In January 2025 the City Mayor and his Cabinet
approved a £25,000 per annumn hardship fund for the Pendleton
PFI housing stock for 2 years.  This was
established in recognition of the impact of the cost of living
crisis, to support residents and families in times of
crisis. 

·        
In addition to this direct support
offered to Pendleton PFI residents and families, the council
continues to support all our residents and families across the
 city through our work to tackle poverty, including Household
Support Fund, Salford Assist, Discretionary Housing Payments, the
Council Tax Support Scheme, and partnership working with Salford
Credit Union. 
Assessment of
Risk: Low
The source of funding is: Housing Revenue Account
Legal Advice obtained:
As
the report sets out, the Government introduced a new Rent Standard for housing providers
in April 2020 which enabled local authorities to increase
residents’ rents by up to Consumer Price Index (CPI) 1% each
year until 2025. Whilst PFI funded housing continues to be exempt
from the Rent Standard, the council considered the policy when
considering rent increases.
 
Also set out in detail are the approaches taken
in setting rent levels since 2023 (namely an increase of RPIX +1%
with a 4% cap and the recommended option is to reflect that
increase in 2026/27 and then reviewed annually to ensure there are
sufficient funds to meet any new regulations which may be
introduced.
 
In terms of service charges for utilities,
security, cctv etc, the Council must have in place a fair,
transparent policy for charging residents, such costs being
calculated based on a combination of actual and estimated costs, as
described.
 
The Council is also
required to set a balanced HRA budget, and the proposals are in
line with the HRA requirements of the account which cannot go into
a deficit.
Financial Advice obtained:
The
rents and service charges proposed within this report would be a
significant source of income for the HRA, in line with the HRA
requirements the account cannot go into a deficit, so the proposals
are in line with the requirements of the account.
Procurement Advice obtained: N/A
HR Advice obtained: N/A
Climate Change Advice obtained:
N/A
The following documents have been used to assist
the decision process: N/A

Contact Officer:  Jane Barlow, Service Manager
Contracts
Telephone number: Jane Barlow 0161 793
2372
(Please delete from the list below any which are
not relevant).

·        
This document records a key decision which was
included in the Council’s Forward Plan

·        
The appropriate scrutiny to call-in the decision is
the Growth and Prosperity Scrutiny Panel     

 

Signed:     Paul Dennett             
Dated: 13.01.26                    
                                       
              
City Mayor, Paul Dennett
 

For Democratic
Services use only

 

This
decision was published on 13.01.26                                    

This
decision will come in force at 4.00 p.m. on 20.01.26                   
                              
unless it is called-in in
accordance with the Decision Making Process
Rules.