Decision details

That Cabinet recommend that Council*

1.    Note the HRA Financial Plan operating account, including annual working balances, as detailed in Appendix 6 of report CAB3490.

2.    Approve the 2025/26 Housing Revenue Account budget as detailed in Appendices 1 and 2 to the report. 

3.    Approve the proposed capital programme for maintenance, improvements and renewals totalling £167.868m.

4.    Approve capital expenditure and delegate to the Strategic Director with responsibility for housing authority to enter into necessary contracts for the 2025/26 capital programme of £21.134m, as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4.

5.    To approve the award of a contract, by direct award, for technology-based retrofit works of £4.3m per year in 2025/26, 2026/27 and 2027/28 (totalling £12.8m), contingent on funding secured from the Department of Energy Security and NetZero Social Housing Fund Wave 3 Grant, equivalent to 190 properties over 3 years. (See Para 11.62 to 11.65 of the report).

6.    Approve the proposed 10 year capital programme for new homes totalling £237.7m, and expenditure of £5.255m in 2025/26, as detailed in appendix 4 of the report in accordance with Financial Procedure Rule 7.4, 

7.    Approve the financing of the HRA Capital Programme as detailed in Appendix 5 of the report, (noting the planned repayment of borrowing following the 1000 homes programme).

8.    Approve the revenue savings target of £2m outlined to Cabinet in the November options paper and subsequently consulted upon and summarised at appendix 7 of the report.

9.    Authorise the Section 151 Officer, in consultation with the Strategic Director with responsibility for Housing to approve the buy-back, during 2025/26, of individual former HRA properties sold under the Right to Buy, following positive financial appraisal, utilising the unallocated New Homes budget (see para 11.26 of the report).

10. Subject to the acceptance of the expression of interest to the Local Authority Housing Fund (LAHF) round 3:

a.    Authorise the Strategic Director with responsibility for Housing to enter into a revised Memorandum of Understanding with Ministry of Housing, Communities & Local Government to secure additional LAHF funding estimated at £2.841m

b.    Delegate authority to the Section 151 Officer to approve capital expenditure (subject to financial appraisal, in accordance with Financial Procedure Rule 7.4) of up to £6.0m to purchase up to 12 properties using the approved HRA unallocated new build budget, to be part-financed by LAHF grant with any balance via prudential borrowing.

c.     Authorise the Corporate Head – Asset Management and the Strategic Director with responsibility for Housing to purchase up to 12 properties. (Para 11.70-11.72 of the report) 

11. Approve the average rent increase for 2025/26 for all affordable, Shared Ownership and social housing of 2.7% based on the September 2024 CPI figure of 1.7% +1% (see para 11.6-11.7 of the report).
12. Approve amendments to HRA tenant service charges in 2025/26 to reflect cost recovery based on 2023/24 actual costs, subject to capping at 5% or £5, whichever is greater, and noting that capped charges will be subject to gradual increases in future years (see para 11.41 to 11.45 of the report). 
13. Note that the previously approved consultation on the move to full cost recovery for both private and tenant connections of the council’s sewage treatment works will now take place in 2025/26 (see para 11.46-11.51 of the report).
14. Note that the draft HRA Business 30-year Plan is viable and sustainable and has the capacity to support the delivery of 1,000 new affordable homes.

*NB recommendations to Council are not subject to call-in.