Agenda item

RECOMMENDATIONS:

1.   That the HRA Financial Plan operating account extract, including annual working balances be noted, as detailed in Appendix 6 of report CAB3445.

2.    That the 2024-25 Housing Revenue Account budget be approved as detailed in Appendices 1 and 2 to the report. 

3.    That the 10-year indicative HRA capital programme be approved as set out in appendices 3 and 4 of the report.

4.    That capital expenditure in 2024-25 of £18.649m for the Maintenance, Improvement and Renewal programme be approved as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4.

5.    That the proposed budget in 2024-25 for new homes of £15.524m be approved as detailed in Appendix 4 of the report subject to individual scheme approvals.

6.    That the proposed indicative funding for the HRA Capital Programme be approved as detailed in Appendix 5 of the report.

7.    That the proposed additional investment in the council housing stock of £30m over the next eight years to 2030-31 to retrofit properties on a fabric first basis to help improve their energy efficiency and reduce energy costs for tenants be noted. This additional annual investment brings the total annual investment here to £5.6m a year and £45m in total (see paragraph 12.5 of the report).

8.    That the proposed strategic change in direction moving from a plan based upon direct delivery of new homes to one based upon a mixture of actively acquiring s106 affordable housing directly from developers alongside future development with grant funding and using Right to Buy resources be approved (see paragraph 13.7 of the report), including the continuing commitment to rural housing, including through rural exception sites.

9.    That the current financial viability assessment for new build be noted and that at present all potential development sites based on current assumptions evaluated this year have not been assessed as being financially viable within the existing viability model (see paragraphs 13.1-13.10 of the report).

10.That the proposed move to 80% market rent to help improve the viability of new homes development and to mitigate the increasing cost of delivery be approved (see paragraph 13.5 of the report).

11.That a revenue savings target of £400k over two years to assist with bridging the forecast gap in financing future capital expenditure be approved (see paragraph 14.2 of the report).

12.That the disposal in principle of Barnes house in 2024-25 be approved, and in addition the disposal of £0.500m of surplus HRA property per year over the next eight years to generate additional capital receipts to help fund the increased investment requirement over these years be approved (see paragraph 14.3 of the report).

13.That the average formula rent increase for 2024-25 for all affordable and social housing of 7.7% based on the September 2023 CPI figure of 6.7% +1% be approved (see paragraphs 15.1-15.4 of the report).

14.That the proposed move from RPI+0.5% to CPI+1% for existing council shared owners in the HRA from 2024-25 onwards, as well as in all future HRA shared ownership leases be approved. Note that the impact of this in 2024-25 will be a reduction in rent rises this year from 9.4% to 7.7% (see paragraph 15.4 of the report).

15.That a 7.7% increase in tenant service charges in 2024-25 be approved (see paragraph 15.5 of the report). 

16.That consultation on the move to full cost recovery from 2025-26 for both private and tenant connections of the council’s sewage treatment works be approved and it be noted that this will include transitional protection and be achieved within a nine-year timeframe, but subject to a further report in Autumn 2024 (see paragraphs 15.7-15.12 of the report).

17.That it be noted that officers are currently beginning a review of the current Housing IT management system with a view to evaluating whether it is still fit for purpose or needs to be replaced, as well as beginning work on the re-procurement of the repairs and maintenance contract. The Business plan provides for this to happen over the following two years at a provisional one-off cost of up to £2m (see paragraph 12.10 of the report).

18.   That it be noted that the draft HRA Business 30-year Plan is viable and sustainable and has the capacity to support the council’s ambitious delivery of 1,000 new affordable homes over the next 10 years. The proposed plan provides sufficient funds over the life of the plan to still deliver over 1,500 new affordable homes in total.

Councillor Becker left the meeting before consideration of this item and took no part in the discussion or decision.

Councillor Westwood (Cabinet Member for Housing) moved that the recommended minute of Cabinet be approved and adopted (seconded by Councillor Tod, Leader and Cabinet Member for Asset Management).

Council noted that due to an administrative error, an incorrect version of the minute extract of Cabinet had been included in the agenda pack for the meeting.  The Recommendations for Council on the agenda front sheet were correct.  The correct version of the minute extract of Cabinet had been distributed in a supplementary agenda to Council in advance of the meeting.

Council proceeded to ask questions and then debate the matters in the recommended minute and report.

RESOLVED:

That the recommended minute of Cabinet held 8 February 2024 (as follows) be approved and adopted:

1.That the HRA Financial Plan operating account extract, including annual working balances be noted, as detailed in Appendix 6 of report CAB3445.

2. That the 2024-25 Housing Revenue Account budget be approved as detailed in Appendices 1 and 2 to the report.

3. That the 10-year indicative HRA capital programme be approved as set out in appendices 3 and 4 of the report.

4. That capital expenditure in 2024-25 of £18.649m for the Maintenance, Improvement and Renewal programme be approved as detailed in Appendix 3 of the report in accordance with Financial Procedure Rule 7.4.

5. That the proposed budget in 2024-25 for new homes of £15.524m be approved as detailed in Appendix 4 of the report subject to individual scheme approvals.

6. That the proposed indicative funding for the HRA Capital Programme be approved as detailed in Appendix 5 of the report.

7. That the proposed additional investment in the council housing stock of £30m over the next eight years to 2030-31 to retrofit properties on a fabric first basis to help improve their energy efficiency and reduce energy costs for tenants be noted. This additional annual investment brings the total annual investment here to £5.6m a year and £45m in total (see paragraph 12.5 of the report).

8. That the proposed strategic change in direction moving from a plan based upon direct delivery of new homes to one based upon a mixture of actively acquiring s106 affordable housing directly from developers alongside future development with grant funding and using Right to Buy resources be approved (see paragraph 13.7 of the report), including the continuing commitment to rural housing, including through rural exception sites.

9. That the current financial viability assessment for new build be noted and that at present all potential development sites based on current assumptions evaluated this year have not been assessed as being financially viable within the existing viability model (see paragraphs 13.1-13.10 of the report).

10.That the proposed move to 80% market rent to help improve the viability of new homes development and to mitigate the increasing cost of delivery be approved (see paragraph 13.5 of the report).

11. That a revenue savings target of £400k over two years to assist with bridging the forecast gap in financing future capital expenditure be approved (see paragraph 14.2 of the report).

12.That the disposal in principle of Barnes house in 2024-25 be approved, and in addition the disposal of £0.500m of surplus HRA property per year over the next eight years to generate additional capital receipts to help fund the increased investment requirement over these years be approved (see paragraph 14.3 of the report).

13.That the average formula rent increase for 2024-25 for all affordable and social housing of 7.7% based on the September 2023 CPI figure of 6.7% +1% be approved (see paragraphs 15.1- 15.4 of the report).

14. That the proposed move from RPI+0.5% to CPI+1% for existing council shared owners in the HRA from 2024-25 onwards, as well as in all future HRA shared ownership leases be approved. Note that the impact of this in 2024-25 will be a reduction in rent rises this year from 9.4% to 7.7% (see paragraph 15.4 of the report).

15.That a 7.7% increase in tenant service charges in 2024-25 be approved (see paragraph 15.5 of the report).

16.That consultation on the move to full cost recovery from 2025-26 for both private and tenant connections of the council’s sewage treatment works be approved and it be noted that this will include transitional protection and be achieved within a nine year timeframe, but subject to a further report in Autumn 2024 (see paragraphs 15.7-15.12 of the report).

17.That it be noted that officers are currently beginning a review of the current Housing IT management system with a view to evaluating whether it is still fit for purpose or needs to be replaced, as well as beginning work on the re-procurement of the repairs and maintenance contract. The Business plan provides for this to happen over the following two years at a provisional one-off cost of up to £2m (see paragraph 12.10 of the report).

18. That it be noted that the draft HRA Business 30-year Plan is viable and sustainable and has the capacity to support the council’s ambitious delivery of 1,000 new affordable homes over the next 10 years. The proposed plan provides sufficient funds over the life of the plan to still deliver over 1,500 new affordable homes in total