Issue - meetings

Councillor Roberts, Portfolio Holder for Finance, introduced the recommendations of the Executive in respect of the Housing Revenue Account (HRA) Budgets 2024-25.  Under the proposals, the rent levels would increase from 1 April 2024 by 7.7% based on September CPI of 6.7% and in line with the advice of the Government.  Total rental income was forecast to increase by circa £1.79 million to circa £20 million, excluding void losses.

It was noted that the HRA was forecast to make an estimated surplus of some £960,000 in the coming year, the first step towards the sustainable maintenance of the housing stock.  The budget included an increase in interest costs that would be incurred from borrowing an additional £2.5 million to support the capital programme for housing.  This would be necessary to fund high risk fire safety remedial works, along with a number of Decent Homes improvements.

The Portfolio Holder for Housing, Councillor Johnson, spoke in support of the recommendations, highlighting the positive outcomes the proposed measures would deliver.  It was noted that a survey of tenants would be sent out on the following day, seeking their views on the level of services provided.

A few concerns were raised during the debate over the company responsible for housing repairs and its response to tenants requiring essential repairs.  However it was acknowledged that the historic issues were being addressed and that tenants were starting to see improvements come through.  Councillor Johnson responded to the points raised, acknowledging that the new housing repairs team had taken on a large number of issues when awarded the contract.

The recommendations were agreed nem con.

RESOLVED

That  (i)    the Final Housing Revenue Account budgets for 2024- 25, as set out in Appendix 1 to the report received by the Executive, be agreed; and

          (ii)   with effect from 1 April 2024, rents be increased by 7.7%.

Reporting Persons – Eugene Walker and Louise Strongitharm

The Executive received the Housing Revenue Account (HRA) Budgets 2024-25 for recommendation to Council.  It was noted that a review of recharge allocations had been undertaken during 2023-24 to ensure recharges were fair and reasonable to the HRA, and the 2024-25 budget assumptions included those adjusted recharges.  The Executive was informed that the HRA was forecast to make an estimated surplus of some £960k in 2024-25.  It was reported that the 2024-25 HRA Budget included an increase in interest costs that would be incurred from borrowing an additional £2.5m to support the capital programme for housing.  Due to the poor condition of the Council’s housing stock, capital investment was required to fund high risk safety remedial works and Decent Homes improvements.  The Executive welcomed the 30-year HRA Business Plan and the Housing Asset Management Plan which was part of the Capital Programme report later on the agenda.  Consideration of reaching Net Zero by 2030 and improving energy efficiency was highlighted when investing in and refurbishing the Council’s housing estate.

Regarding service charges, the Portfolio Holder for Housing highlighted the need for support to be made available to vulnerable tenants to ensure that those tenants claimed benefits to which they were entitled and which would cover service charges.

Following national issues around damp and disrepair, it was highlighted that there was a new Government requirement for all local authorities and social landlords to consult Council tenants.  This positive step to consult tenants would take place in Woking in the coming months.

The Executive welcomed the Council’s focus on homes for local people and the investment planned in the Council’s social housing to tackle fire safety and to undertake Decent Homes improvements.

RECOMMENDED to Council

That  (i)    the Final Housing Revenue Account budgets for 2024-25, as set out in Appendix 1 to the report, be agreed; and

          (ii)   with effect from 1 April 2024, rents be increased by 7.7%.

Reason:   To approve the resources necessary to implement the Council’s objectives for Housing and to enable the Council to determine charges to tenants for 2024/25.

Reporting Persons – Eugene Walker and Louise Strongitharm

Louise Strongitharm, Strategic Director of Communities, explained the undertaking to bring the Housing Revenue Account (HRA) back into balance for the next year.  Due to the work, it was expected that the HRA would have a surplus of £953,000 for the year 2024/25.

The Government had confirmed that local authorities could increase rents by CPI+1% which was contrary to previous years.

In total a capital programme of £16.7 million was proposed for the HRA in the next year.

The Government had removed the requirement for minimum revenue provision in the HRA some years previous in favour of a depreciation-akin model.  The model allowed for provision to fund increased investment in the stock.

The Section 151 Officer noted that relatively few Councils made debt repayment provisions on the HRA.

It was suggested that residents be provided communication that although works were provisioned the programme would take time to be fulfilled.  Officers agreed to the suggestion.

RESOLVED

that the report be noted.