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Cabinet received a report giving an update on
the updated Housing Revenue Account Business Plan for 2026/27 to
2056/57 setting out the Council’s long-term vision and
financial strategy for managing and maintaining council
housing.  The Plan provided a clear
framework to ensure tenants homes remained safe, high-quality, and
affordable, while supporting the delivery of new social and
affordable housing to meet the needs of the community.
 
Members were pleased to note the significant
investment programme including £148 million investment into
existing stock over the next five years, and £745 million
over the next 30 years.
 
£457 million was also allocated for new
housing, with 281 homes currently under construction and a net
increase of 1,107 homes projected over the lifetime of the
plan.
 
The Portfolio Holder for Housing drew
Cabinet’s attention to two amendments to the HRA Business
Plan that was published for the purpose of this meeting.
 
On page 48 of the pack, there were two values
missing from the Income bullet point which should read
‘rental income includes the impact of rent flexibility on
relets and rent convergence with a £1 per week limit. Service
charges and other income remain in line with inflation, if this
were not to be approved, the 2026/27 year end reserves position
would be £209K lower and the savings target for
2027/28 £681K higher.’
 
On page 49 of the pack, again, on the Interest
bullet point, the last sentence had two figures represented by
crosses and it should read as ‘The average interest rate for
the period 2025/26-2030/21 is 3.49% and
3.75% for new loans.’
 
The Portfolio Holder for Resources and
Performance advised that whilst the Council had ambitious plans for
its homes, the HRA faced some challenges with higher inflation,
repair costs and regulatory compliance.
 
It was RESOLVED:
 

1.   
That the Housing Revenue Account Business
Plan 2026/27-2026/57 as seen in Appendix A be approved;

2.   
That the approach to borrowing principles as set out in
the Business Plan and summarised in paragraph 4.8 be approved;

3.   
That the minimum level of balances for the HRA Business
Plan, which is set at £10Million be noted;

4.   
That the assumptions used for the Medium-Term Financial Strategy
and that the growth and savings proposals
(Appendix B & C) are incorporated into the 2026/27 budget
be approved;

5.   
That the Capital Programme assumptions contained within
the plan for the housing stock and new build properties
be approved and that these be incorporated into the
2026/27 Capital Strategy;

6.   
That the financing of the Capital Programme for inclusion in
the Capital Strategy including prudential borrowing to fund capital
projects in 2026/27 of £35.6Million
and re-financing of internal debt of 7Million be
approved.  Future years borrowing
requirements will be considered annually in line with
anticipated expenditure.

7.   
That the significant risks and uncertainties affecting the national
housing landscape be noted and that delegated authority be granted
to the Strategic Director (RP), in consultation with the Portfolio
Holder for Housing and Housing Development, to make minor
amendments as necessary to safeguard the financial viability of the
Plan.