Purpose

To consider the report of the Cabinet Member
for Finance and Corporate Services detailing the HRA Budget 2025/26
and Capital Programme 2024/25 to 2029/30.

Decision

Cabinet is recommended to:
 
 
(i) 
Recommend to Council that from 1 April 2025, an average rent
increase will be applied to dwelling rents of 2.7% in line with the
rent increase guidance set by Government, as detailed in paragraph
16, equivalent to an average increase of £2.70 per week in
the current average weekly dwelling rent figure of £99.90 for
Social rent, and £4.40 per week in the current average weekly
rent for affordable rent of £162.80. Rents for Shared
Ownership rents will also increase by 2.7%.
 
(iii) 
Recommend to Council that weekly service charges will increase 2.7%
from 1 April 2025, as detailed in paragraph 22, pending further
work on service charges in 2025/26.
 
(iv) 
Recommend to Council the Housing Revenue Account revenue estimates
as set out in Appendix 4.
 
(v) 
Recommend to Council the 40 year Business Plan for revenue and
capital expenditure set out in Appendix 1, Appendix 5 confidential
Appendix 6 respectively, that based on current assumptions are
sustainable, maintaining a minimum HRA balance increasing from
£2.59M brought forward into 2024/25 to £7.00M by
2027/28, following a review of policy undertaken in 2023/24 for
future budgets to provide a sufficient and necessary buffer against
financial risks.
 
(vi) 
Recommend to Council a decrease in 
landlord-controlled heating charges of 10% as set out in paragraph
26.
 
(vii)  Recommend
to Council the revised Housing Revenue Account (HRA) Capital
Programme, which totals £312.92M (as detailed in paragraph 55
& 56 and the associated use of resources.
(viii)  Recommend to Council the
continuation of the current policy to increase the HRA working
balance from the forecast £3.09M as at the end of 2024/25 to
£7M by 2027/28.

Reasons for the decision

1.  The
Constitution requires the Executive to recommend its HRA budget
proposals for the forthcoming year to Full Council. The
recommendations contained in this report set out the various
elements of the budget that need to be considered and addressed by
the Cabinet in preparing the final papers that will be presented to
Full Council.
2.  The
recommendations set out in this report help to ensure we are
continuing to provide statutory services and help improve the
quality of life for residents through a financially sustainable
Housing Revenue Account. The recommendations enable a balance
budget for 2025/26 and the 40-year
business plan is also set out in the report which demonstrates
longer-term financial viability.

Alternative options considered

3. 
Alternative options for HRA revenue spending and assumptions form
an integral part of the development of the overall HRA budget and
capital programme that will be considered at the Council meeting on
26 February 2025.
4.  This
report sets out the HRA revenue budget for 2025/26 and the 40-year
HRA business plan covering the period 2025/26 to 2064/65. Rental
income, service charges and heating charges are an integral part of
the revenue estimates for 2025/26. The alternative proposal would
not be to increase rent and this was rejected on the basis that
business plan objectives, particularly for increasing standards of
homes would not be met.