Issue - meetings

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

Report of the Cabinet Member for Housing Operations detailing the HRA Budget 2025/26 and Capital Programme 2024/25 to 2029/30.

This report details the Housing Revenue Account (HRA) budget for 2025/26, Capital Programme 2024/25 to 2029/30 and a 40-year business plan.

It provides detail to inform Council in setting rents, service charges and Landlord Controlled Heating charges for 2025/26. The report also sets out the Capital Programme for the Housing Revenue Account (HRA) for the period 2024/25 to 2029/30. The report identifies how the 2025/26 HRA budget has been balanced, and the current iteration of the 40-year financial plan.

The report recommends a rent and service charge increase of 2.7% and a 10% reduction in landlord-controlled heating due to reductions in energy costs.

The recommendations therein, were moved by Councillor A Frampton and seconded by Councillor Fielker.

UPON BEING PUT TO THE VOTE THE EXECUTIVE’S BUDGET AND CAPITAL PROGRAMME PROPOSALS WERE DECLARED CARRIED

RESOLVED that the HRA Budget 2025/26 and Capital Programme 2024/25 to 2029/30, be approved as detailed in the report recommendations.

NOTE – FOR THE SUBSTANTIVE MOTION: Councillors Allen, Barnes-Andrews, Blatchford, Bogle, Bunday, Cooper, Cox, Denness, Evemy, Fielker, Finn, A Frampton, Y Frampton, Goodfellow, Greenhalgh, Kataria, Kenny, Keogh, C Lambert, G Lambert, Leggett, Letts, McCreanor, McManus, Noon, Payne, Rayment, Savage, Shields, Webb, Whitbread, Windle and Winning.

NOTE – AGAINST THE SUBSTANTIVE MOTION: Councillors J Baillie, P Baillie, Barbour, Beaurain, Blackman, Chapman, Galton, Gravatt, Harwood, Laurent, Percival, Stead and Wood.

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.

Decision made: (CAB 24/25 47851)

On consideration of the report of the Cabinet Member for Finance and Corporate Services, Cabinet approved the following:

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%.

(ii)  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.

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

(iv)  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.

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

(vi)  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.

(vii)  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.