Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: November 19, 2025

Purpose:

Content:   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