Decision Maker: Strategy and Resources Policy Committee

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: No

Date of Decision: January 21, 2026

Purpose:

Content: 8.1 The Executive Director, Neighbourhood Services submitted a report setting out the 2026/27 Housing Revenue Account (HRA) Business Plan. Each year the HRA Business Plan is reviewed and updated to set the budgets and charges for the year ahead and to provide an updated 5-year plan and 30-year affordability profile.   The HRA Business Plan, included as Appendix A to the report, provides further detail about the current operating environment, the priorities for the HRA over the next 12 months and an overview of revenue and capital spending proposals over both the 5 and 30 year-life of the Business Plan.     8.2 RESOLVED UNANIMOUSLY: That Strategy and Resources Policy Committee recommends to the meeting of the City Council on 4 February 2026 that:-       (a) the HRA Business Plan and Revenue Budget 2026/27 and 5 year capital investment programme as set out in the Financial Appendices in Appendix A, are approved by the City Council;   (b) it is noted that once the HRA Business Plan is approved by Full Council, the Housing Policy Committee will be responsible for monitoring how well the plan is being delivered;   (c) rents for council housing, including temporary accommodation are increased by 4.8% from April 2026 in line with the Regulator of Social Housing’s Rent Standard of September 2025’s Consumer Price Index (CPI) + 1%;   (d)  in addition to recommendation (c) and dependent upon the Government announcement in January 2026, the rent of any of our council homes set at a social rent shall be increased (by up to an additional  £2 per week) to achieve formula rent from April 2026 in line with the proposed Rent Convergence Policy that Government indicated it will publish in January 2026;     (e) garage rents for garage plots and sites are increased by 4.8% from April 2026;   (f)  the weekly District Heating standing charge is increased from £4.90 to £5.50 from April 2026;   (g) the sheltered housing service charge is increased by 3.8% from April 2026;   (h) the burglar alarm charge is increased by 3.8% from April 2026; and   (i)  the furnished accommodation charge is increased by 3.8% from April 2026     8.3 Reasons for Decision     8.3.1 This report and its recommendations, sets out the scale of the challenge ahead, the limited resources available and the difficult decisions that now need to be taken to deliver a balanced HRA budget for 2026/27 and for the overall 30-year viability.     8.4 Alternatives Considered and Rejected     8.4.1 The Council is required to both set a balanced in year HRA budget and to ensure that in-year income and expenditure are balanced over 30 years. No other alternatives were considered.