Issue - meetings

RESOLVED

That (i)   the Final Housing Revenue Account budgets for 2025-26, as set out in Appendix 1 to the report, be agreed; and

        (ii)  with effect from 7 April 2025, rents be increased by 2.7%.

Reason:  To enable a decision to be made by Council on the Housing Revenue budget for 2025 and approval of the increase in rents from 7 April 2025.

The Council had before it the recommendations of the Executive which proposed the Housing Revenue Account (HRA) budgets for 2025/26.  The budgets would set the framework for the management of the Council’s housing stock and would ensure that the rental income was used effectively to maintain and improve the properties. 

The proposals were introduced by Councillor Dale Roberts, Portfolio Holder for Finance, and Councillor Ian Johnson, Housing Portfolio Holder, who highlighted the intention to spend £16m on fire risk and decent homes over the coming year, leading to a big impact for tenants.  The proposals included an element of borrowing, though it was emphasised that this had been budgeted for.

RESOLVED

That (i)   the Final Housing Revenue Account budgets for 2025-26, as set out in Appendix 1 to the report, be agreed; and

        (ii)  with effect from 7 April 2025, rents be increased by 2.7%.

Reason:  To enable a decision to be made by Council on the Housing Revenue budget for 2025 and approval of the increase in rents from 7 April 2025.

Reporting Persons – Stephen Fitzgerald and Louise Strongitharm

The Executive RESOLVED

That in their regular reviews of the HRA Long Term Business Plan, the Executive should pay particular attention to interest rates and review the Plan based on that information; and

The Executive RECOMMENDED to Council

That  (i)    the Final Housing Revenue Account budgets for 2025-26, as set out in Appendix 1 to the report, be agreed; and

          (ii)   with effect from 7 April 2025, rents be increased by 2.7%.

Reason:   To enable a decision to be made by Council on the Housing Revenue budget for 2025 and approval of the increase in rents from 7 April 2025.

The Executive received the Housing Revenue Account (HRA) Budgets 2025-26 for recommendation to Council.  It was explained that the HRA set out the financial framework for managing the Council’s housing stock of some 3,300 homes ensuring that rental income was used effectively to maintain and improve those homes.  Attention was drawn to the 30-Year HRA Business Plan, approved by Council in December 2024, noting that the HRA Budget was fully aligned with the Plan’s strategic objectives.

The Executive was confident in the direction being taken and welcomed that the HRA Budget was addressing historic under-investment in housing and the need for long-term sustainability.

The Communities and Housing Scrutiny Committee, at its meeting on 11 December 2024, had considered the 30-Year HRA Business Plan and had agreed to recommend that the Executive, in their regular reviews of the HRA Business Plan, should pay particular attention to interest rates and review the Plan based on that information.  The Executive agreed to take forward the recommendation from the Committee.

RESOLVED

That in their regular reviews of the HRA Long Term Business Plan, the Executive should pay particular attention to interest rates and review the Plan based on that information; and

RECOMMENDED to Council

That  (i)    the Final Housing Revenue Account budgets for 2025-26, as set out in Appendix 1 to the report, be agreed; and

          (ii)   with effect from 7 April 2025, rents be increased by 2.7%.

Reason:   To enable a decision to be made by Council on the Housing Revenue budget for 2025 and approval of the increase in rents from 7 April 2025.

An update on the Housing Revenue accounts budget for financial year 2025-6

Reporting people: Stephen Fitzgerald & Louise Strongitharm

Stephen Fitzgerald, Strategic Director for Finance, and Louise Strongitharm, Strategic Director for Communities, introduced this report with a summary outlining a proposed 2.7% increase in rents, to achieve a total budget of £22.6 million. The low reserves position of the Housing Revenue Accounts, at approximately £144,000, was also identified. This was largely due to one-off costs, related to the decommissioning of properties in Brockhill and Sheerwater, and these are not anticipated to continue. The budget remained aligned with the 30-year business plan for the Housing Revenue Account, aiming to rebuild a reserve of £500 per council property. Built into this were assumptions of cost savings due to the reallocation of overhead costs, and additional borrowing to fund the capital programme. Louise was optimistic this would be a step in the right direction.

The reduction in housing stock of approximately 86 during the year was questioned by members. Louise Strongitharm identified that, alongside an assumed loss of 12 properties per year through the Right to Buy scheme, the number of properties available would also reduce due to the changes at the Brockhill and Sheerwater developments. Whilst national changes to the Right to Buy scheme may reduce this number, funds generated from Section 106 charges or Right to Buy could be used to acquire new properties and enhance the council stock.

An additional question concerning the impact on the housing waiting list was put to officers. Louise Strongitharm noted that this remained relatively static at approximately 1100, however the position of the Housing Revenue Account would not allow large scale developments to be considered as a solution at this time. Instead, the authority would need to continue to work with housing associations to identify suitable properties.

A final question was asked, regarding the financial implications of the loss of solar panels built at the Brockhill development if the site was demolished. Kevin Foster, Strategic Director for Corporate Resources, confirmed this was being reviewed by officers, and further information would be available at future meetings.

The committee RESOLVED:

That the report be noted