Agenda item

1.    That the draft HRA Business 30-year Plan for 2024-25 to 2053-54 metrics shown in Appendix 3 and current 5 year projection at Appendix 1 be noted.

2.    That the business plan pressures identified in the 2024/25 business planning exercise as outlined in paragraphs 11.26 and 11.36 of report CAB3478, totalling £1.986m be noted.

3.    That the budget options outlined within report CAB3478 and detailed at Appendix 2 be approved as a basis for consultation to inform the February budget setting.

4.    That the reallocation of £0.25m from the one off investment budget set in the previous business plan be approved to meet actions arising from our self assessment of our consumer standards compliance and service improvements identified. 

5.    That the continuing strategy for New homes 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 noted.

6.    That the current financial viability assessment for new build from para 11.15 to 11.25 of the report be noted.

7.    That it be noted that a revenue savings target of £2m has been set to assist with bridging the forecast gap in financing future capital expenditure.

8.    That the proposed timescale for asset disposals be noted, and that Barnes House disposal has been reconsidered for proposed use as Temporary Accommodation.

9.    That it be noted that based on the September 2024 CPI figure of 1.7% that the average formula rent increase for 2025-26 for all affordable and social housing will be 2.7%.

10.That it be noted that the budget in October announced a consultation for future rent settlement between now and December, which indicates preference for CPI+1 for 5 years into the future, and approve the application of this principle in the business plan model to mitigate the cost of new build developments and reduce long term debt burden to the HRA once the outcome of the consultation is known.

11.That continuing full cost recovery in tenant service charges in 2025/26 be approved and it be noted that charges will generally reduce following a softening of energy prices.

12.That it be noted that there is an ongoing workstream 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 £0.4m in 2024/25, and estimated £0.3m in 2025/26.

As noted above, Councillor Becker declared a pecuniary interest in respect of this item and left the room during its consideration and took no part in the discussion or decision. 

Councillor Westwood introduced the report which included proposals to support the council’s commitment to increase retrofit investment in homes and to deliver the 1000 new homes programme by 2032/33.  The budget options had been reviewed by the TACT Board, who were broadly supportive, and their feedback would be considered as part of the ongoing budget process.

At the invitation of the Leader, Councillors Lee and Horrill addressed Cabinet as summarised briefly below.

Councillor Lee

He raised a number of points reiterating statements he had made at Scrutiny Committee.  These included querying the TC25 efficiency proposals related to the housing programme to provide sustainable homes for the future and proposals to address future risks in terms of borrowing costs or reducing grant levels.  He emphasised the importance of invest to save and digitalisation of decarbonisation measures.  He was concerned that the proposal to purchase new homes (rather than the council build them) could result in an  energy performance gap between what was predicted by the EPC and what was delivered by developers.

Councillor Horrill

She supported the majority of proposals in the report.  She referred to comments and requests for additional data made at Scrutiny Committee which had not yet been received.  She raised the following queries: further clarity on service charges in relation to sewage treatment works; the risk of not having an up-to-date housing stock condition survey; whether the TACT Board had been given the opportunity to properly consider the report’s proposals.

Councillor Westwood responded to the comments made including confirming that the budget proposals would be considered by the TACT Board prior to Cabinet in February 2025 and that further consultation would be undertaken with all the council’s housing tenants.

Councillor Tod referred to the discussion of the report at Scrutiny Committee on 12 November and the draft minutes which had been circulated to Cabinet and other members present prior to the Cabinet meeting.  The Strategic Director confirmed that the request for tenant service charge information and data would be made available to all members, as requested,  as part of the February 2025 consideration of the budget.

Cabinet agreed to the following for the reasons set out in the report and outlined above.

RESOLVED:

1.                That the draft HRA Business 30-year Plan for 2024-25 to 2053-54 metrics shown in Appendix 3 of the report and current 5 year projection at Appendix 1 be noted.

2.                That the business plan pressures identified in the 2024/25 business planning exercise as outlined in paragraphs 11.26 and 11.36 of the report, totalling £1.986m be noted.

3.                That the budget options outlined within the report and detailed at Appendix 2 be approved as a basis for consultation to inform the February budget setting.

4.                That the reallocation of £0.25m from the one off investment budget set in the previous business plan be approved to meet actions arising from our self assessment of our consumer standards compliance and service improvements identified. 

5.                That the continuing strategy for New homes 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 noted.

6.                That the current financial viability assessment for new build from para 11.15 to 11.25 of the report be noted.

7.                That it be noted that a revenue savings target of £2m has been set to assist with bridging the forecast gap in financing future capital expenditure.

8.                That the proposed timescale for asset disposals be noted, and that Barnes House disposal has been reconsidered for proposed use as Temporary Accommodation.

9.                That it be noted that based on the September 2024 CPI figure of 1.7% that the average formula rent increase for 2025-26 for all affordable and social housing will be 2.7%.

10.            That it be noted that the budget in October announced a consultation for future rent settlement between now and December, which indicates preference for CPI+1 for 5 years into the future, and approve the application of this principle in the business plan model to mitigate the cost of new build developments and reduce long term debt burden to the HRA once the outcome of the consultation is known.

11.            That continuing full cost recovery in tenant service charges in 2025/26 be approved and it be noted that charges will generally reduce following a softening of energy prices.

12.            That it be noted that there is an ongoing workstream 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 £0.4m in 2024/25, and estimated £0.3m in 2025/26.