Agenda item

To seek Cabinet’s approval of the updated HRA Business Plan for 2023/24 along with final HRA budget proposals 2024/25 (including fees and charges, capital programme and movement in HRA Balances) for recommendation to Council on 13 February 2024.

RESOLVED that Cabinet -

(a)    approves the updated HRA Business Plan, which includes the proposed position for 2023/24 and 2024/25, as set out in Appendix A to the joint report;

(b)    authorises the Assistant Director (Finance & IT) to adjust the forecast / budget, including the use of reserves, in consultation with the Portfolio for Housing and Planning and the Portfolio Holder for Corporate Finance and Governance if the financial position changes prior to Council considering the HRA budget on 13 February 2024; and

(c)    recommends to Full Council a 7.7% increase in dwelling rents in 2024/25, along with the detailed HRA Budget proposals for 2024/25, as set out in Appendices B to E to the joint Portfolio Holder report (A.7).

Cabinet considered a joint report of the Housing & Planning Portfolio Holder and the Corporate Finance & Governance Portfolio Holder (A.7), which sought its approval of an updated Housing Revenue Account (HRA) Business Plan for 2023/24 and 2024/25, along with final HRA budget proposals for 2024/25 (including fees and charges, capital programme and movement in HRA balances) for recommending to the Full Council meeting on 13 February 2024. 

It was reported that, since the Cabinet’s last meeting on 15 December 2023, only two amendments to the proposed budget for 2024/25 had been required with 2023/24 remaining unchanged. The changes required in 2024/25 had resulted in the overall surplus increasing to £0.300m a change of £0.120m compared to the position reported to Cabinet in December 2023. Appendix Ato the joint report set out the updated Business Plan, in terms of 2023/24 and 2024/25, with Appendix B thereto setting out the proposed detailed budgets that reflected that latest position.

Cabinet was informed that it was proposed to fund the estimated deficit for 2023/24 by calling money from HRA balances as an alternative to reducing expenditure, which was partly offset by the proposal to transfer the estimated surplus in 2024/25 to the same reserve. This position remained subject to further adjustments that were likely to be required as part of finalising the budget for presenting to Council on 13 February 2024, with a delegation included in the Portfolio Holders’recommendations to respond to that possibility.

Members were advised that Appendix C set out the proposed fees and charges for 2024/25, which broadly reflected inflationary uplifts of 7.7% where relevant or other inflationary changes to better reflect the cost of providing the associated service.

The proposed HRA Capital Programme for 2024/25 was set out in Appendix D,which reflected the Council’s commitment to maintain the necessary investment in the existing homes of tenants.

Cabinet was made aware that the average weekly rent remained unchanged to the figure reported in December at £100.89, an increase of 7.7% over the comparable figure of £93.68for 2023/24. The HRA general balance was forecast to total £3.651m at the end of 2024/25, 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 2024/25 were important elements of delivering a sustainable HRA in the longer term.

It was also reported that HRA debt continued to reduce year on year as principal was repaid with a total debt position at the end of 2024/25 forecast to be £32.535m(A reduction of £1.414m compared with the figure at the end of 2023/24).

Cabinet was reminded that the Tenant’s Panel played an important role in developing the HRA Business Plan and budget proposals and that it was proposed to consult with them shortly, with any comments planned to be reported to Members either ahead of, or directly at, the Full Council meeting on 13 February 2024.

The Leader of the Council (Councillor M E Stephenson) read out the following statement:-

“Only a couple of changes have been made to the budget since our meeting in December, which are set out in the report. The proposed rent increase remains the same at 7.7%, which helps us balance cost increases etc. within the HRA. Similarly to the General Fund position, there are a few budget adjustments that remain outstanding that will be finalised in readiness for reporting to Full Council on 13 February.

Along with updated Business Plan figures, the report also sets out the detailed budget, capital programme and reserves. Based on the latest position, it is proposed to contribute £300k to HRA balances which offsets the planned use of the same reserve in 2023/24.

I understand that the Tenants’ Panel is meeting in early February and I look forward to their comments which we will make available to Members ahead of the Full council meeting on 13 February.”

Having duly considered the most up to date HRA Business Plan which set out a revised position for 2023/24 along with the proposed HRA budget for 2024/25, and in order to enable the associated recommendations to be presented to Full Council on 13 February 2024:-

It was moved by Councillor M E Stephenson, seconded by Councillor Baker and:-

RESOLVED that Cabinet -

(a)    approves the updated HRA Business Plan, which includes the proposed position for 2023/24 and 2024/25, as set out in Appendix A to the joint report;

(b)    authorises the Assistant Director (Finance & IT) to adjust the forecast / budget, including the use of reserves, in consultation with the Portfolio for Housing and Planning and the Portfolio Holder for Corporate Finance and Governance if the financial position changes prior to Council considering the HRA budget on 13 February 2024; and

(c)    recommends to Full Council a 7.7% increase in dwelling rents in 2024/25, along with the detailed HRA Budget proposals for 2024/25, as set out in Appendices B to E to the joint Portfolio Holder report (A.7).