Purpose

Expenditure and income relating to property
listed in section 74 of the Local Government and Housing Act 1989
(“the 1989 Act”) must be accounted for in the Housing
Revenue Account (HRA). This report sets out the proposed HRA
Business Plan for approval in advance of the commencement of the
new financial year (1 April to 31 March). The HRA is a ring-fenced
account within the General Fund containing the income and
expenditure arising from the Council’s landlord functions.
Government guidance highlights the need to be fair to both tenants
and council taxpayers and that there should be a fair and
transparent apportionment of costs between the HRA and General
Fund.

Content

RESOLVED

That Full Council be recommended to
approve

a)          
the 2026-2027 Housing Revenue Account Business Plan and overriding
principles as set out in report
FIN/684 (noting the Housing Revenue Account Property Portfolio
Rents will come to Cabinet as a separate report).

b)          
the minimum recommended HRA Balance remains at £5m.

Reasons for the Recommendations

a)               
To agree the Council’s strategy for the HRA Business Plan
including the assumptions made which will set the budget parameters
for 2026/2027.

b)               
The Business Plan uses financial assumptions and recent legislative
changes, such as the level of rent that can be charged, to forecast
the long-term financial sustainability of the HRA.

c)               
The Business Plan reflects the Council’s priorities to
deliver affordable homes for Crawley and improvements to the
management of the council’s housing stock.

d)               
The aims of the Business Plan are to ensure there are resources in
place to undertake the following during the life of the plan:

·             
Manage, maintain and improve existing housing stock.

·             
Deliver new affordable housing aligned with local needs.

·             
Ensure long-term financial viability and resilience.

·             
Support decarbonisation and sustainability goals.

·             
Engage tenants and stakeholders in decision-making.

e)               
In order to deliver the capital projects identified for the HRA,
the Council will need to borrow at increasing levels.  The Business Plan takes account of this borrowing
need in the assessment of affordability and financial
sustainability.