To seek Cabinet’s approval of the updated HRA Business Plan for 2025/26 and 2026/27 along with final HRA budget proposals for 2026/27 (including fees and charges, capital programme and movement in HRA Balances) for recommending to Full Council on 17 February 2026.

RESOLVED that Cabinet –

(a)     approves the updated HRA Business Plan, which includes the revised position for 2025/26 along with the proposed budget for 2026/27, as set out in Appendix A to report A.3;

(b)     approves the detailed HRA Budget proposals for 2026/27, as set out in Appendices B to E;

(c)     authorises the Corporate Director (Finance & IT), in consultation with the Portfolio Holder for Housing and Planning and the Portfolio Holder for Corporate Finance and Governance, to adjust the forecast / budget, including the use of reserves, if the financial position changes prior to Full Council considering the HRA budget on 17 February 2026; and

(d)     acknowledges the Statutory Officers’ and this Council’s obligations to a successor Unitary Authority as part of the current LGR proposals, including those that are expected to emerge within legislation / associated structural orders as set out within the main body of the report.

RECOMMENDED TO COUNCIL that a 4.8% increase in dwelling rents in 2026/27, along with the detailed HRA budget proposals for 2026/27, as set out in Appendices B to E, be approved.

Cabinet considered a joint report of the Housing & Planning Portfolio Holder and the Corporate Finance & Governance Portfolio Holder (A.3) which set out and sought Cabinet’s approval of the updated HRA Business Plan covering 2025/26 and 2026/27 along with final HRA budget proposals for 2026/27 (including fees and charges, capital programme and movement in HRA Balances) for recommending to Full Council on 17 February 2026.

Cabinet recalled that, at its meeting on 19 December 2025, it had considered the Housing Revenue Account Business Plan which had included proposed budget amendments in 2025/26 and budget proposals for 2026/27. The updated HRA Business plan / budget proposals at that time had provided for a deficit of £1.278m in 2025/26 and a deficit of £0.650m in 2026/27.

Those initial budget proposals had been subject to consultation with the Resources and Services Overview and Scrutiny Committee, which had met on 14 January 2026 to consider them.

It was reported that no budget amendments for 2025/26 and 2026/27 had been required since Cabinet’s meeting on 19 December 2025 and therefore the annual budget deficits highlighted above had remained unchanged.

For completeness, the Business Plan position for 2025/26 and 2026/27 had been restated within Appendix A, withAppendix B setting out the more detailed position for both years.

As set out within the report to Cabinet in December 2025, it was proposed to fund the estimated deficits highlighted above by calling down money from HRA balances as an alternative to reducing expenditure.

Cabinet was informed that, as had been the case in previous years, this formed part of a managed approach with the use of reserves to maintain the necessary balance of ‘protecting’ the investment in tenants’ homes whilst recognising the need to use reserves to respond to the on-going financial challenges that the HRA continued to face. It was however recognised that this was not a sustainable long-term solution, but it enabled the Council to continue to meet its key priorities in the immediate term whilst acknowledging that future years of the forecast were expected to deliver offsetting annual surpluses from as early as 2028/29. Those future forecast surpluses would be primarily achievable via the planned reduction in debt and interest costs, as outstanding loans were repaid and the longer-term certainty provided by the Government’s commitment to a ten-year rent setting policy of CPI + 1%.

Members were made aware that the proposed average weekly rent remained unchanged to the figure reported in December 2025 at £108.46, an increase of 4.8% over the comparable figure of £103.49 for 2025/26.

Appendix C to the joint report set out the proposed fees and charges for 2026/27, which broadly reflected inflationary uplifts of 4.8% where relevant or other inflationary changes to better reflect the cost of providing the associated service.

Cabinet was advised that the proposed HRA Capital Programme for 2026/27 was set out in Appendix D, which reflected the commitment to maintain the necessary investment in the existing homes of tenants along with the increased flexibilities relating to retained right to buy capital receipts that had been previously announced by the Government. The HRA Capital Programme therefore more broadly reflected the commitment of building / acquiring properties that were supporting additions to the existing stock to meet housing need.

This approach in turn aligned with the Council’s priorities, including the potential to increase the supply of homelessness temporary accommodation within the District, with the full amount of currently available retained right to buy receipts now included within the proposed HRA Capital Programme, alongside available Section 106 funding. This approach aimed to increase flexibility and transparency in terms of highlighting the total amount of capital funding held by the Council within the capital programme, rather than the alternative of it remaining ‘outside’ of the Capital Programme and only transferred in when separate associated decisions were made during the year.

It was reported that HRA debt continued to reduce year on year as principal was repaid with a total debt position at the end of 2026/27 forecast to be £29.706m (a reduction of £1.414mcompared with the figure at the end of this financial year).

The HRA general balance was forecast to total £2.124m at the end of 2026/27, which retained a relatively strong financial position against which the associated HRA Business Plan could continue to be delivered / developed.

The HRA balances, together with the proposed rent increase for 2026/27 were important elements of delivering a sustainable HRA in the longer term.

Cabinet recognised that the overall HRA position described above remained subject to further adjustments that were likely to be required as part of finalising the budget for presenting to Full Council on 17 February 2026, with a delegation included in the report’s recommendations to respond to that possibility.

Cabinet endorsed that the Tenants’ Panel played an important role in developing the HRA Business Plan and budget proposals and noted that they had expressed their support for the proposals set out within this report when they had met on 16 December 2025 as part of the required consultation process.

As highlighted within the report to Cabinet in December 2025, the approach to the development of the HRA Business Plan would also enable the continuation of a relatively strong financial position and provide flexibility to respond to statutory obligations that were expected to emerge in respect of any incoming new Unitary Authority from as early as April 2028, as part of the Government’s Devolution Priority Programme and their current timetable for Local Government Reorganisation (LGR) for Greater Essex.

To enable Cabinet to consider the most up to date HRA Business Plan which set out the revised position for 2025/26 along with the proposed HRA budget for 2026/27, to enable associated recommendations to be presented to Full Council on 17 February 2026:-

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

RESOLVED that Cabinet –

(a)     approves the updated HRA Business Plan, which includes the revised position for 2025/26 along with the proposed budget for 2026/27, as set out in Appendix A to report A.3;

(b)     approves the detailed HRA Budget proposals for 2026/27, as set out in Appendices B to E;

(c)     authorises the Corporate Director (Finance & IT), in consultation with the Portfolio Holder for Housing and Planning and the Portfolio Holder for Corporate Finance and Governance, to adjust the forecast / budget, including the use of reserves, if the financial position changes prior to Full Council considering the HRA budget on 17 February 2026; and

(d)     acknowledges the Statutory Officers’ and this Council’s obligations to a successor Unitary Authority as part of the current LGR proposals, including those that are expected to emerge within legislation / associated structural orders as set out within the main body of the report.

RECOMMENDED TO COUNCIL that a 4.8% increase in dwelling rents in 2026/27, along with the detailed HRA budget proposals for 2026/27, as set out in Appendices B to E, be approved.