Decision

 

That the draft HRA
Business 30-year Plan for 2025-26 to 2055-56 metrics shown in
Appendix 3 and current 5 year projection at Appendix 1 of report
CAB3523 be noted.

 

That the business
plan pressures identified in the 2025/26 business planning exercise
as outlined in paragraphs 11.41 to 11.51 of the report be noted,
totalling £1.26m one off pressures and £1.2m ongoing
pressures.

 

That the budget
options outlined within the report and detailed at Appendix 2 be
approved, as a basis for consultation to inform the February budget
setting, including potential options for rent convergence in line
with government proposals.

 

That the allocation
of £0.12m per annum to support upgrades to the asset and
property management systems be approved, including reprofiling
£0.02m from the one-off investment budget set in the 2023/24
business plan to cover initial preparatory costs in 2025/26, with
clearer estimates of project management costs for 2026/27 to be
included in the February budget report.

 

That a change in the
calculation of interest on internal borrowing and lending between
the General Fund and HRA be approved, namely to equalise the
interest rate at the PWLB 3 month variable loan rate for both
borrowing and lending as outlined at paragraphs 11.34 to 11.36 of
the report.

 

That the assumption
in the business plan for New homes to be aligned to the Housing
Development Strategy be noted.

 

That the current
financial viability assessment for new build from paragraph 11.16
to 11.22 of the report be noted.

 

That it be noted that
quantified revenue savings of £0.892m, and capital savings of
£0.25m outlined in Appendix 2 of the report, have been
identified to assist with bridging the forecast gap in annual HRA
budgets.

 

That the proposed
assumptions and timescale for asset disposals outlined in
paragraphs 11.62 to 11.64 of the report be noted.

 
10. 
That it be noted that based on the September 2025
CPI figure of 3.8% that the average formula rent increase for
2025-26 for all affordable and social housing will be
4.8%.
 
11. 
That it be noted that the government is consulting
on rent convergence criteria which indicates preference to increase
rents above CPI+1% for social rent tenants below formula rent
levels, with announcement expected as part of the wider Budget on
26 November 2025.
 
12. 
That the principle of full cost recovery in tenant
service charges (other than sewage treatment works) in 2026/27 be
approved.
 
13. 
That it be noted that following implementation of
options, the draft HRA Business 30-year Plan is viable and
sustainable and has the capacity to support the council’s
ambitious delivery of 1,000 new affordable homes by the end of
2031/32