To present to Council, the Executive’s Housing Revenue Account budget proposals for 2026/27 (including fees and charges, capital programme and movement in HRA Balances).

Earlier on in the meeting, as detailed under Minute 103 above, Councillor Bray had declared an Interest in relation to this item insofar as he was a housing tenant of Tendring District Council. He thereupon withdrew from the meeting whilst Council considered this item and reached its decision thereon.

 

Further to Minute 104 of the meeting of the Cabinet held on 30 January 2026, the Council considered the Executive’s Housing Revenue Account (HRA) budget proposals for 2026/27 (including fees and charges, capital programme and movement in HRA balances).

 

It was reported that there had only been a very limited number of changes since Cabinet met on 30 January 2026, which had been reflected in Appendices A to E to report A.2, as necessary. The outcome of the changes required was a reduced deficit of £0.540m in 2026/27 compared with the figure of £0.650m reported to Cabinet in January. It was proposed to fund this estimated deficit by calling money from HRA balances as an alternative to potentially reducing expenditure.

 

Members were reminded that this approach continued to form part of a managed approach with the use of reserves seeking 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 were 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%.

 

Council was informed that, for 2026/27, the Executive’s budget proposals set out an increase in dwelling rents of 4.8% along with a total HRA expenditure budget of £18.883m (net of indirect income / expenditure)and a capital programme totalling £6.900m. The 4.8% increase in dwelling rents resulted in an average weekly rent of £108.46 in 2026/27 (£103.49 in 2025/26).

 

Appendix C to report A.2 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.

 

Members were cognisant that the proposed budget reflected the continued repayment of debt, with the total level of existing debt falling from £31.120m to £29.706m at the end of 2026/27.

 

The HRA general balance was forecast to total £2.234m at the end of 2026/27, which retained a strong financial position against which the associated HRA 30 Year Business Plan could continue to be delivered / developed.

 

Members were aware that the HRA balances, together with the proposed rent increase for 2026/27 were important elements of delivering a financially sustainable HRA in the longer term. The HRA Business Plan and proposed budget played a significant role in the delivery of affordable and decent housing in the District and the Council’s responsibilities as a landlord had direct implications for the Council's ability to deliver on its objectives and wider priorities, along with a focus on housing standards and the on-going impact from the Government / Regulator. It also provided some flexibility to add to our existing stock.

Council recalled that, as highlighted within the associated budget reports to Cabinet in December and January, 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 Council 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.

 

The Leader of the Council (Councillor M E Stephenson) made the following budget statement:-

 

“We now turn to the Housing Revenue Account. Like the General Fund, this budget is about decisions taken today that will shape outcomes well beyond the lifetime of this Council. But the HRA is also different, because it speaks directly to our responsibilities as a landlord and to the everyday lives of more than 3,000 households across Tendring who rely on us for a safe, secure place to live.

 

For those residents, their council home is not an abstract asset or a financial line. It is where families settle, where children grow up, and where people should feel safe, warm and supported. That is why everything we do through the HRA is grounded in a clear and consistent principle: putting tenants first and managing their homes responsibly.

 

As with the wider budget, this HRA is being set against a challenging backdrop. Over the past year, tenants have faced rising household bills and cost?of?living pressures, while expectations of us as a landlord rightly remain high, particularly around repairs, safety and standards. At the same time, councils face increased regulatory requirements under the Social Housing (Regulation) Act and continued inflation in construction and materials costs.

 

Despite those pressures, Tendring’s Housing Revenue Account remains strong, stable and well?managed. Through regular engagement with tenants, including our Tenants’ Panel, we have been open about the financial context we face and the need to make decisions that protect services and homes in the long term. That engagement matters, because it builds understanding and confidence that tenants’ interests are at the heart of our plans.

 

For 2026/27, this has resulted in a 4.8% rent increase, taking the average weekly rent to £108.46. This remains significantly below much of the wider rented sector. Like the Council Tax decision in the General Fund, this increase is modest, proportionate and necessary. It enables us to maintain homes properly, meet higher safety standards and avoid the deeper problems that arise when investment is delayed.

 

The Government’s 10?year rent setting policy of CPI plus 1% provides welcome certainty and underpins our longer?term planning. That stability is important for residents because it supports consistent services, avoids sudden shocks, and allows us to focus on prevention and maintenance rather than crisis response.

 

Residents expect their homes to be safe, warm and well maintained, and this budget reflects those priorities. The proposed HRA capital programme continues to focus on:

 

• major repairs and refurbishments to keep homes in good condition
• disabled adaptations that help tenants live independently and with dignity
• upgrades to heating, electrical and wider building safety systems
• new build and acquisition opportunities, supported by Right to Buy receipts and Section 106 funding

 

These investments directly improve residents’ quality of life. They reduce disrepair, improve comfort and safety, and help increase the supply of good?quality, affordable homes for local people. They also align with our wider Housing Strategy and our commitment to doing the right thing for tenants.

 

As with the General Fund, this level of investment must be supported by sound financial stewardship. Our long?term HRA approach for 2026/27 therefore includes:

 

• careful and deliberate use of reserves, rather than cutting repairs or services
• reducing void losses so homes are available more quickly to those who need them
• reviewing contracts to secure better value for money on behalf of tenants
• continuing stock condition surveys so investment is targeted where it will have the greatest impact

 

Based on current plans, HRA reserves are forecast to total £7.152 million at the end of 2026/27, including £2.234 million in general balances. This provides resilience and the ability to respond to unforeseen issues affecting tenants’ homes, without compromising day?to?day services.

 

HRA debt is forecast to reduce to £29.706 million. Through refinancing historic loans and making greater use of internal borrowing rather than more expensive external lending, we are ensuring that more money is directed into homes and services, rather than interest payments. This is prudent financial management, and it delivers clear benefits for residents.

 

From 2028/29, the HRA is forecast to move into surplus. This creates additional flexibility to invest in repairs, improvements and new housing; while also ensuring we meet our responsibilities as we transition to a new Unitary Council from 1 April 2028.

 

With two years remaining before that transition, our HRA plans provide a legacy that mirrors the wider financial approach of this Council. That legacy is one of:

 

• continuity and stability for tenants
• a strong and sustainable 30?year Business Plan
• a funded and deliverable investment programme
• regulatory compliance that protects tenants’ rights and safety
• a clear and transparent financial position for the new authority to build on

 

For residents, this means confidence that their homes are being managed responsibly now and that the future is being planned carefully. It also provides the new Council with the flexibility to grow and improve the housing offer over time, increasing access to decent homes for local people.

 

In closing, this HRA budget reflects the same principles that underpin the wider budget before Council tonight. It is about responsible stewardship, long?term planning and putting people first. It protects tenants’ homes and services, invests in safety and quality, and prepares Tendring for a smooth transition into a new Unitary Council.

 

It is a budget that supports residents today and safeguards the future of our housing stock.

 

I commend this HRA budget to Full Council.”

 

It was moved by Councillor M E Stephenson and seconded by Councillor Baker that the recommendations, as set out on page 132 of the Council Book, be approved.

 

In addition to Councillor Stephenson, Councillor Baker spokeon the subject matter of this item.

 

Pursuant to the provisions of Council Procedure Rule 19.5, Councillor M E Stephenson, supported by nine other Members present at the meeting, demanded a recorded vote on his motion.

 

That vote resulted as follows:

 

Councillors For	Councillors Against	Councillors Abstaining	Councillors Not Present
Baker Barrett Barry Bensilum Bush Calver Casey Chapman BEM Codling Davidson Doyle Fairley Fowler Goldman Guglielmi I J Henderson J Henderson Keteca Morrison Newton Oxley Scott Smith G L Stephenson M E Stephenson Sudra Talbot Thompson Wiggins	None	Alexander Amos A I Cossens M A Cossens Griffiths P B Honeywood S A Honeywood Land Platt Skeels	Bray Davis Everett Ferguson Harris Kotz Placey Steady White

 

Councillor Stephenson’s motion was declared CARRIED and it was therefore:-

 

RESOLVED that -

 

(a)     a 4.8% increase in dwelling rents in 2026/27 be approved;

 

(b)     the Housing Revenue Account Budget for 2026/27, as set out in Appendix B to item A.2 of the Report of the Cabinet, along with the Fees and Charges, HRA Capital Programme and the movement in HRA Balances / Reserves, as set out respectively in Appendices C to E to report A.2 be approved; and

 

(c)     the Statutory Officer’s and Council’s obligations to a successor Unitary Council 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 report A.2, be acknowledged.