Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 11, 2025

Purpose:

Content: RESOLVED: Cabinet recommended to Council; a)    The HRA revenue budget for 2025-26 of £67.4m. b)    An average maximum rent increase of 2.7% per dwelling, in line with the legislation and the government’s amended national rent standard, to take effect from 1 April 2025. c)     An increase of 2.7% in garage rents and commuter surcharges to take effect from 1 April 2025. d)    An average increase of 2.7% in tenants and leaseholders service charges with effect from 1 April 2025. e)    The HRA capital programme for 2025-26, noting the future year estimated commitments, and proposed sources of finance. f)      The total management fee of £35.6m for NPH to deliver the HRA services in scope for 2025-26. g)    The setting of the working balance at £6m, with the assessed minimum level of £5m informed by the outcome of the latest financial risk assessment. h)    That authority be delegated to the Executive Director of Finance in consultation with the Portfolio Holder for Finance to transfer monies to/from earmarked reserves and the working balance, should that become necessary during the financial year. i)       That authority be given to the Executive Director of Finance to update the prudential indicators in the Treasury Management Strategy reported to Council. j)       That authority be delegated to the Executive Director of Finance in consultation with the portfolio holder for Finance to amend the capital programme for 2025-26 going forward so that it accurately reflects issues such as slippage on current year projects that will need to be added to the programme, any amendments made to existing capital programmes, adjustments to accommodate any future use of capital receipts policy, and for any other reason where the capital programme needs to be adjusted. k)     That authority be delegated to the Executive Director of Finance to make any technical changes necessary to the papers for the Council meeting of 20 February 2025. l)       That authority be delegated to the Executive Director of Finance to approve, finalise and publish the HRA Business Plan 2025 which will be produced once this report has been considered and agreed by full council.   REASONS RESOLVED: 1.     To ensure that the HRA reflects the statutory requirement under Section 74 of the Housing and Local Government Act 1989 to account separately for local housing services. 2.     To ensure the Council sets a balanced HRA within national standards in relation to rent increases and is able to meet its wider duties and obligations to tenants.   ALTERNATIVE OPTIONS: These are set out within the report.