The Housing and Homelessness Policy and Accountability Committee met to discuss the council's revenue budget and the Housing Revenue Account budget for 2026/27. Key decisions included the proposed increase in Council Tax and the adoption of savings proposals within the Housing Solutions service.

2026/27 Revenue Budget and Medium-Term Financial Strategy

The committee reviewed the proposals for the 2026/27 revenue budget and the Medium-Term Financial Strategy (MTFS). The report highlighted that while inflationary pressures were easing, demand-led pressures in areas like Adult Social Care, Children's Services, and Homelessness, combined with funding formula reforms and business rates retention changes, presented ongoing financial challenges. The council proposed a balanced budget for 2026/27, including £9.5 million in efficiencies.

A significant aspect of the budget proposal was the planned increase in Council Tax by 2.99%, along with an additional social care precept. This combined increase, equivalent to 92 pence per week for Band D properties, was projected to generate an additional £4.4 million annually. This funding was deemed essential for maintaining financial resilience, meeting increasing demand and inflation, and balancing the impact on council taxpayers.

The report detailed proposed savings across various departments, with £1.2 million specifically relevant to the Housing Solutions service. These savings included £1.1 million from the Transfer of leases to housing company – increased charges and £0.1 million from Additional income from licences.

The committee was also asked to consider proposed changes to fees and charges. For non-commercial and non-parking fees, a standard uplift of 3.8% was recommended, aligning with September's Consumer Price Index (CPI). Exceptions to this uplift were detailed in Appendix 4 of the reports pack.

The Director of Housing, Richard Shwe, provided comments on the budget proposals, focusing on the Housing General Fund. He outlined the significant pressures faced by the Housing Solutions service due to the national homelessness crisis, including increasing demand, a lack of available supply, and rising costs in temporary accommodation. The report detailed the council's strategy to manage homelessness, which included prevention, advice, support for those facing financial pressures, and work with landlords. The Housing General Fund revenue budget for 2026/27 was set at £21.5 million, reflecting an increase from the previous year due to inflation and depreciation, partially offset by savings.

A key proposal to address the financial pressures of temporary accommodation involved the establishment of a wholly-owned housing company. This company would manage existing Private Sector Leased (PSL) properties, allowing for rents to be aligned with current Local Housing Allowance (LHA) rates, thereby improving cost recovery through Universal Credit and reducing the council's budget shortfall. This transfer was expected to generate £1.05 million in savings.

The committee was presented with the Housing and Homelessness Policy and Accountability Committee Agenda for the meeting, which included details on the budget proposals.

Housing Revenue Account Budget 2026/27

The committee also received a slide presentation on the Housing Revenue Account (HRA) Budget for 2026/27 and its Business Plan. While the specific details of this presentation were not fully elaborated in the provided documents, it formed a significant part of the meeting's agenda, indicating a focus on the financial management of the council's housing stock.

Date of Future Meetings

The committee noted the dates for future meetings, with the next scheduled for 20th April 2026.