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Cabinet received a report on the
proposals for the Housing Revenue Account (HRA) budgets and rent
setting for 2025/26, which would also be considered by Council on
22 January 2025.

The report recommended that rents on
dwellings be increased by 2.7% which was in line with Government
policy for rent setting.  The report
also advised Members of some new pressures for the HRA including
potential changes to National Insurance and responsive repair
costs.

Members noted that although there were
pressures on the HRA and the rents were increasing in line with
Government Policy, a substantial amount of money was being
allocated for the building of new homes and for the improvement of
the Council’s current housing stock.  The pressures would be monitored regularly through
the Housing Executive Working Group.

It was noted that the pressures were
similar across the Country for those local authorities with HRA
budgets.

It was RESOLVED:

1.              
That the proposals for the Housing
Revenue Account (HRA) budgets and rent setting for 2025/26, to be
considered by Council on 22 January 2025 be noted.

2.              
That Members be updated on the formula
for setting rents for 2025/26.

3.              
That the HRA rents for 2025/26 be
approved.

4.              
That the HRA service charges for 2025/26
be approved.

5.              
That the 2025/26 HRA budget,
incorporating the decisions included in the HRA Medium Term
Financial Strategy (MTFS) report that was approved at the Cabinet
meeting on the 13 November 2024 and the proposed 2025/26 fees and
charges be noted.

6.              
That the further financial pressures
identified since the HRA MTFS was approved in November 2024 be
noted.
 
Reason for Decision: As contained in the report.
Other Options
considered:As contained in
the report.