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RESOLVED:
 
1. 
The HRA budget proposals as set out in Section 6 and
Appendix 1 were approved.
 
2. 
The increase in rent of 2.7% in line with the Social
Housing Regulator’s rent ceiling and that rents will increase
on average by £3.38 a week from £125.18 to
£128.56 per week with effect from Monday 7th April 2025, were
approved.
 
3. 
The increase in HRA fees & charges as set out in
Appendix 2 were approved.
 
4. 
The increase in tenant service charges as set out in
paragraph 6.17; and the service charges for the Concierge service
as set out in paragraph 6.18, were approved.
 
5. 
The increase in Travellers charges at 2.7% as set out
in paragraph 6.24, was approved.
 
6. 
The increase in Shared Ownership rent at 2.7% as set
out in paragraph 6.25, was approved.
 
7. 
It was agreed to delegate to the Interim Group
Director, Finance, in consultation with the Cabinet Member for
Housing Services and Resident Participation and the Cabinet Member
for Finance, Insourcing and Customer Services, the setting of
communal heating charges to reflect the unit costs of
utilities.
 
8. 
The Housing Capital Programme budget as set out in
Appendix 2 to be included in the overall Council Capital budget for
approval as part of the Council Budget and Council Tax Setting
Report to be approved at February 2025 Cabinet, was
approved.
 
REASONS FOR DECISION
 
Section 76 of the Local Government and Housing
Act 1989 requires Local Authorities with a Housing Revenue Account
(HRA) to set a budget for the account that avoids a deficit, whilst
using robust and valid assumptions.
 
Furthermore, there is a statutory requirement
for the Council to prepare a 30 Year Business Plan for the HRA on
an annual basis. The purpose of this exercise is to keep the
long-term financial viability of the HRA under regular review.
 
The report also provides the approval needed
to set HRA tenant rents and other charges for the financial year
2025/26. The Council is required by law to give tenants at least 28
days’ notice of any variation to the rent charged.
 
DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND
REJECTED
 
The HRA covers all income and expenditure
relating to the portfolio of housing stock owned by the Council. It
is required by the Local Government and Housing Act 1989 to be
ring-fenced from the Council’s General Fund. The legislation
specifies that only expenditure relating to the Council’s
landlord role can be charged to the HRA and, by extension, funded
by the rents charged to tenants. The Council has a legal duty to
ensure that the account remains solvent and to prepare a long-term
business plan annually that keeps this under regular review.
 
Preparing the 30-Year HRA Business Plan
involves a long-term assessment of the funding needed to deliver
landlord duties alongside wider strategic housing objectives. This
involves detailed modelling of operating resource requirements,
capital investment plans and external funding streams against wider
environmental factors such as macroeconomic assumptions and
potential legislative changes.
 
The 2025/26 budget has been built from the
30-Year HRA Business Plan and reviewing the base budget, including
current forecasts of items of essential expenditure, maintenance
and investment to preserve the housing service and its assets.
 
Alternative rent increases were considered in
setting the budget, but any reduction to the rent rise as set by
the Regulator of Social Housing in the Rent Standard would result
in the requirement for additional savings that would impact on
services to tenants. A reduction in income would also have a long
term impact on future rent levels and income and the ability to
deliver front line services and invest in the Housing
stock.