Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: January 13, 2026

Purpose:

Content: Salford City Council - Record of Decision (Cabinet)   I, Paul Dennett, City Mayor, in consultation with the Cabinet and in exercise of the powers contained within the City Council Constitution do hereby approve:   1.    An increase of 4% for rents in 2026/27 for the Pendleton Private Finance Initiative (PFI) stock   2.    An increase of Retail Price Index excluding Mortgage Interest (RPIX) +1% with a 4% floor for rents in 2027/28 and future years for the Pendleton PFI stock   3.    Adjustments to Pendleton Private Finance Initiative (PFI) service charges in line with the costs of providing those services as detailed in section 3 of the report   4.    Subsidy for gas utilities at Lombardy Court of c£3.6k   5.    To cap the security service fee at the 2025/26 levels due to improvements being required to the service to meet the expected service level – this will be a cost to the HRA of £43,250 in 2026/27.   The Reasons are: ·         A rent freeze was considered as an option, but resulted in the HRA entering an unlawful deficit over the life of the HRA Business Plan. ·         The viability of the Housing Revenue Account through to 2043/44 has also had to consider the additional cost implications associated with the Building Safety Act, Consumer Standards and contract expiry costs.  Whilst it is the council’s desire to keep rents as low as possible, we need to prudently manage the Housing Revenue Account which can’t legally go into deficit or be cross subsided as determined by the Local Government & Housing Act 1989. The rent increase is not funding any of the current cladding replacement works. ·         Pendleton Together and the Council have reviewed the current service charges and have proposed revised charges based upon actual and estimated costs. The cost of services will vary from block to block depending upon services received.  ·         A number of mitigations have been put in place to ensure residents can maximise their income and access additional support where required. ·         In January 2025 the City Mayor and his Cabinet approved a £25,000 per annumn hardship fund for the Pendleton PFI housing stock for 2 years.  This was established in recognition of the impact of the cost of living crisis, to support residents and families in times of crisis.  ·         In addition to this direct support offered to Pendleton PFI residents and families, the council continues to support all our residents and families across the  city through our work to tackle poverty, including Household Support Fund, Salford Assist, Discretionary Housing Payments, the Council Tax Support Scheme, and partnership working with Salford Credit Union.  Assessment of Risk: Low The source of funding is: Housing Revenue Account Legal Advice obtained: As the report sets out, the Government introduced a new Rent Standard for housing providers in April 2020 which enabled local authorities to increase residents’ rents by up to Consumer Price Index (CPI) 1% each year until 2025. Whilst PFI funded housing continues to be exempt from the Rent Standard, the council considered the policy when considering rent increases.   Also set out in detail are the approaches taken in setting rent levels since 2023 (namely an increase of RPIX +1% with a 4% cap and the recommended option is to reflect that increase in 2026/27 and then reviewed annually to ensure there are sufficient funds to meet any new regulations which may be introduced.   In terms of service charges for utilities, security, cctv etc, the Council must have in place a fair, transparent policy for charging residents, such costs being calculated based on a combination of actual and estimated costs, as described.   The Council is also required to set a balanced HRA budget, and the proposals are in line with the HRA requirements of the account which cannot go into a deficit. Financial Advice obtained: The rents and service charges proposed within this report would be a significant source of income for the HRA, in line with the HRA requirements the account cannot go into a deficit, so the proposals are in line with the requirements of the account. Procurement Advice obtained: N/A HR Advice obtained: N/A Climate Change Advice obtained: N/A The following documents have been used to assist the decision process: N/A Contact Officer:  Jane Barlow, Service Manager Contracts Telephone number: Jane Barlow 0161 793 2372 (Please delete from the list below any which are not relevant). ·         This document records a key decision which was included in the Council’s Forward Plan ·         The appropriate scrutiny to call-in the decision is the Growth and Prosperity Scrutiny Panel        Signed:     Paul Dennett              Dated: 13.01.26                                                                            City Mayor, Paul Dennett   For Democratic Services use only   This decision was published on 13.01.26                                     This decision will come in force at 4.00 p.m. on 20.01.26                                                   unless it is called-in in accordance with the Decision Making Process Rules.