Decision details

To consider the report of the Cabinet Member for Finance and Corporate Services detailing the HRA Budget 2025/26 and Capital Programme 2024/25 to 2029/30.

Cabinet is recommended to:

  (i)  Recommend to Council that from 1 April 2025, an average rent increase will be applied to dwelling rents of 2.7% in line with the rent increase guidance set by Government, as detailed in paragraph 16, equivalent to an average increase of £2.70 per week in the current average weekly dwelling rent figure of £99.90 for Social rent, and £4.40 per week in the current average weekly rent for affordable rent of £162.80. Rents for Shared Ownership rents will also increase by 2.7%.

  (iii)  Recommend to Council that weekly service charges will increase 2.7% from 1 April 2025, as detailed in paragraph 22, pending further work on service charges in 2025/26.

  (iv)  Recommend to Council the Housing Revenue Account revenue estimates as set out in Appendix 4.

  (v)  Recommend to Council the 40 year Business Plan for revenue and capital expenditure set out in Appendix 1, Appendix 5 confidential Appendix 6 respectively, that based on current assumptions are sustainable, maintaining a minimum HRA balance increasing from £2.59M brought forward into 2024/25 to £7.00M by 2027/28, following a review of policy undertaken in 2023/24 for future budgets to provide a sufficient and necessary buffer against financial risks.

  (vi)  Recommend to Council a decrease in  landlord-controlled heating charges of 10% as set out in paragraph 26.

  (vii)  Recommend to Council the revised Housing Revenue Account (HRA) Capital Programme, which totals £312.92M (as detailed in paragraph 55 & 56 and the associated use of resources.

(viii)  Recommend to Council the continuation of the current policy to increase the HRA working balance from the forecast £3.09M as at the end of 2024/25 to £7M by 2027/28.

1.  The Constitution requires the Executive to recommend its HRA budget proposals for the forthcoming year to Full Council. The recommendations contained in this report set out the various elements of the budget that need to be considered and addressed by the Cabinet in preparing the final papers that will be presented to Full Council.

2.  The recommendations set out in this report help to ensure we are continuing to provide statutory services and help improve the quality of life for residents through a financially sustainable Housing Revenue Account. The recommendations enable a balance budget for 2025/26 and the 40-year business plan is also set out in the report which demonstrates longer-term financial viability.

3.  Alternative options for HRA revenue spending and assumptions form an integral part of the development of the overall HRA budget and capital programme that will be considered at the Council meeting on 26 February 2025.

4.  This report sets out the HRA revenue budget for 2025/26 and the 40-year HRA business plan covering the period 2025/26 to 2064/65. Rental income, service charges and heating charges are an integral part of the revenue estimates for 2025/26. The alternative proposal would not be to increase rent and this was rejected on the basis that business plan objectives, particularly for increasing standards of homes would not be met.