Issue - meetings

That Cabinet recommend to Council at its meeting on 11 February 2025:

a)        the HRA budget for 2025/26, as set out in Appendix A to the report;

b)        an increase of 2.7% in the 2025/26 rents of all current HRA tenancies will be applied from 7 April 2025;

c)        the 2025/26 service charges, as set out in Appendix C to the report; and

the Capital Budget set out in Appendix D to the report are committed expenditure in the Capital Programme for 2025/26 to 2028/29.

Reason for Decisions:

To advise Members of the proposed HRA budget and charges in rent and service charge levels for 2025/26 and for these to be recommended to Council at its meeting on 11 February 2025.

Options Considered:

Various modelling was undertaken to assess the impact of different rent levels on the viability of the HRA 30-year business plan to arrive at the recommendation above.

Consideration was also given to varying increases between general needs and supported (sheltered and extra care) accommodation but no rationale was found to support this, alongside the equitable nature of any decision to do so.

The Director – Housing, Health & Wellbeing and Business Manager – Financial Services presented a report which examined the proposed income and expenditure on the Housing Revenue Account (HRA) for the 2025/26 financial year for both revenue and capital, in accordance with Section 76 of the Local Government and Housing Act 1989. The report also provided indicative amounts of income and expenditure for the 2026/27 to 2028/29 financial years for both revenue and capital income and expenditure, and proposed rent levels and service charges for 2025/26, with effect from the first Monday in April 2025.

The setting of the HRA budget and the approval of rent levels would be presented to the Full Council Meeting in February 2025, which would allow the required time to notify tenants of proposed changes to rents in accordance with the legislation. 

AGREED     (with 5 votes for and 1 against) that Cabinet recommend to Council at its meeting on 11 February 2025:

a)           the HRA budget for 2025/26, as set out in Appendix A to the report;

b)          an increase of 2.7% in the 2025/26 rents of all current HRA tenancies will be applied from 7 April 2025;

c)           the 2025/26 service charges, as set out in Appendix C to the report; and

d)          the Capital Budget set out in Appendix D to the report are committed expenditure in the Capital Programme for 2025/26 to 2028/29.

Reason for Decisions:

To advise Members of the proposed HRA budget and charges in rent and service charge levels for 2025/26 and for these to be recommended to Council at its meeting on 11 February 2025.

Options Considered:

Various modelling was undertaken to assess the impact of different rent levels on the viability of the HRA 30-year business plan to arrive at the recommendation above.

Consideration was also given to varying increases between general needs and supported (sheltered and extra care) accommodation but no rationale was found to support this, alongside the equitable nature of any decision to do so.