Agenda item

To seek Cabinet’s approval of the updated Housing Revenue Account (HRA) Business Plan for years 2022/23 and 2023/24 along with final HRA budget proposals for 2023/24 (including fees and charges, capital programme and movement in HRA Balances) for recommendation to Council on 14 February 2023.

RESOLVED that Cabinet –

(a)    approves the updated HRA 30 year Business Plan, which includes the proposed position for 2022/23 and 2023/24, as set out in Appendix A to item A.6 of the Joint Report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder;

(b)    authorises the Assistant Director (Finance & IT), in consultation with the Housing Portfolio Holder, to adjust the forecast / budget, including the use of reserves, if the financial position changes prior to Council considering the HRA budget on 14 February 2023; and

(c)    endorses and approves for submission to Full Council on 14 February 2023 a 7% increase in dwelling rents in 2023/24 along with the detailed HRA Budget proposals for 2023/24, as set out in Appendices B to E to the Joint Report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder (A.6).

Cabinet considered a joint report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder (A.6), which sought its approval of the updated Housing Revenue Account (HRA) Business Plan for years 2022/23 and 2023/24 along with the final HRA budget proposals 2023/24 (including fees and charges, capital programme and movement in HRA Balances) for recommendation to Council on 14 February 2023.

It was reported that, since the Cabinet’s meeting on 16 December 2022, a number of minor changes had been required in 2023/24, with 2022/23 remaining unchanged.

The changes required in 2023/24 had resulted in the overall deficit increasing marginally to £0.296m a change of £0.022m compared to the position reported to Cabinet in December 2022. Appendix Ato the joint report set out the updated Business Plan, in terms of 2022/23 and 2023/24, with Appendix B setting out the proposed detailed budgets that reflected this latest position.

Members were made aware that this position remained subject to further adjustments that might be required as part of finalising the budget for presenting to Council on 14 February 2023, with a delegation included in the joint report’s recommendations to respond to that possibility.

Cabinet was informed that Appendix C set out the proposed fees and charges for 2023/24, which broadly reflected inflationary uplifts of 7% where relevant or changes to better reflect the cost of providing the associated service.

The proposed HRA Capital Programme for 2023/24 was set out in Appendix D, which now included the Honeycroft New Build Scheme and the redevelopment of Spendells House.

Cabinet was advised that the average weekly rent remained unchanged to the figure reported in December 2022 at £93.68, an increase of 7% over the comparable figure of £87.55for 2022/23.

It was reported that the HRA general balance was forecast to total £3.754m at the end of 2023/24, which retained a strong financial position against which the associated HRA 30 year Business Plan could continue to be delivered / developed. The HRA balances, together with the proposed rent increase for 2023/24 were important elements of delivering a sustainable HRA in the longer term.

Cabinet was notified that the HRA debt continued to reduce year on year as principal was repaid with a total debt position at the end of 2023/24 forecast to be £33.949m(a reduction of £1.414m compared with the figure at the end of 2022/23).

Members were informed that it was proposed to consult with the Tenants’ Panel on 7 February 2023, with any comments planned to be reported to Members either ahead of, or directly at, the Full Council meeting on 14 February 2023.

In order to enable the most up to date HRA Business Plan which sets out a revised position for 2022/23 along with the proposed HRA budget for 2023/24, and to enable associated recommendations to be presented to Full Council on 14 February 2023:-

It was moved by Councillor P B Honeywood, seconded by Councillor Bray and:-

RESOLVED that Cabinet –

(a)    approves the updated HRA 30 year Business Plan, which includes the proposed position for 2022/23 and 2023/24, as set out in Appendix A to item A.6 of the Joint Report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder;

(b)    authorises the Assistant Director (Finance & IT), in consultation with the Housing Portfolio Holder, to adjust the forecast / budget, including the use of reserves, if the financial position changes prior to Council considering the HRA budget on 14 February 2023; and

(c)    endorses and approves for submission to Full Council on 14 February 2023 a 7% increase in dwelling rents in 2023/24 along with the detailed HRA Budget proposals for 2023/24, as set out in Appendices B to E to the Joint Report of the Housing Portfolio Holder and the Corporate Finance & Governance Portfolio Holder (A.6).