Content

8.1

The Executive Director, Neighbourhood Services
submitted a report setting out the 2026/27 Housing Revenue Account
(HRA) Business Plan. Each year the HRA Business Plan is reviewed
and updated to set the budgets and charges for the year ahead and
to provide an updated 5-year plan and 30-year affordability
profile.
 
The HRA Business Plan, included as Appendix A to
the report, provides further detail about the current operating
environment, the priorities for the HRA over the next 12 months and
an overview of revenue and capital spending proposals over both the
5 and 30 year-life of the Business
Plan.

 

 

8.2

RESOLVED UNANIMOUSLY: That Strategy and
Resources Policy Committee recommends to the meeting of the City
Council on 4 February 2026 that:-

 

 

 

(a) the HRA
Business Plan and Revenue Budget 2026/27 and 5 year capital
investment programme as set out in the Financial Appendices in
Appendix A, are approved by the City Council;
 
(b) it is noted
that once the HRA Business Plan is approved by Full Council, the
Housing Policy Committee will be responsible for monitoring how
well the plan is being delivered;
 
(c) rents for
council housing, including temporary accommodation are increased by
4.8% from April 2026 in line with the Regulator of Social
Housing’s Rent Standard of September 2025’s Consumer
Price Index (CPI) + 1%;
 
(d)  in addition to recommendation (c) and dependent
upon the Government announcement in January 2026, the rent of any
of our council homes set at a social rent shall be increased (by up
to an additional  £2 per week) to
achieve formula rent from April 2026 in line with the proposed Rent
Convergence Policy that Government indicated it will publish in
January 2026;  
 
(e) garage rents
for garage plots and sites are increased by 4.8% from April
2026;
 
(f)  the weekly District Heating standing charge is
increased from £4.90 to £5.50 from April
2026;
 
(g) the
sheltered housing service charge is increased by 3.8% from April
2026;
 
(h) the burglar
alarm charge is increased by 3.8% from April 2026;
and
 
(i)  the furnished accommodation charge is increased by
3.8% from April 2026

 

 

8.3

Reasons for Decision

 

 

8.3.1

This report and
its recommendations, sets out the scale of the challenge ahead, the
limited resources available and the difficult decisions that now
need to be taken to deliver a balanced HRA budget for 2026/27 and
for the overall 30-year viability.

 

 

8.4

Alternatives Considered and
Rejected

 

 

8.4.1

The Council is required to both set a balanced in year HRA
budget and to ensure that in-year income and expenditure are
balanced over 30 years. No other alternatives were
considered.