Purpose

To consider the report of the Cabinet Member
for Housing detailing the HRA Budget 2026/27 and Capital Programme
2025/26 to 2030/31.

Decision

(i) 
Recommend to Council that from 1 April 2026, an average rent
increase will be applied to dwelling rents of 4.8% in line with the
rent increase guidance set by Government, as detailed in paragraph
16, equivalent to an average increase of £4.92 per week in
the current average weekly dwelling rent figure of £102.53
for Social rent, and £8.18 per week in the current average
weekly rent for affordable rent of £170.50. Rents for Shared
Ownership rents will also increase by either 4.8% or the
alternative increase that is specified in the lease agreement.
(ii) 
Recommend to Council that weekly service charges will increase 4.8%
from 1 April 2026, as detailed in paragraph 23, pending further
work on service charges in 2026/27.
(iii) 
Recommend to Council the Housing Revenue Account revenue estimates
as set out in Appendix 4.
(iv) 
Recommend to Council the 40 year Business Plan for revenue and
capital expenditure set out in Appendix 1 and Appendix 5
respectively, based on current assumptions are sustainable,
maintaining a minimum HRA balance increasing from £4.0M
brought forward into 2026/27 to £7.0M 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.
(v) 
Recommend to Council a decrease in landlord-controlled heating
charges of 10% as set out in paragraph 27.
(vi) 
Recommend to Council the revised Housing Revenue Account (HRA)
Capital Programme, which totals £347.8M 2025/26 to 2030/31
(as detailed in paragraph 58 & 59 and the associated use of
resources.
(vii) 
To make a recommendation to Council to accept the grant of
£1,769,000 from the MHCLG, approve the match funding element
of £2,025,000 via HRA borrowing to deliver the LAHF scheme,
and the recommendation to grant delegated approval on the
individual property investments to the Director of Housing after
consultation with and the Executive Director of Enabling Services,
Executive Director of Growth and Prosperity, the Director of Legal
and Governance and the Cabinet Member for Housing.

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 balanced
budget for 2026/27 and the 40-year business plan is also set out in
the report which demonstrates longer-term financial
sustainability.

Alternative options considered

1. 
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
25 February 2026.
2. 
This report sets out the HRA revenue budget for 2026/27 and the
40-year HRA business plan covering the period 2026/27 to 2065/66.
Rental income, service charges and heating charges are an integral
part of the revenue estimates for 2026/27. 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.