Agenda item

RECOMMENDATION:

It is recommended that scrutiny committee comment on the proposals within the attached cabinet report, ref CAB3540 which is to be considered by cabinet at its meeting on the 12 February 2026.

Councillor Mark Reach, Cabinet Member for Good Homes introduced the report, ref CAB3540 which set out proposals for the Housing Revenue Account (HRA) Budget 2026/27 and the longer-term business plan regarding capital investment. The introduction included the following points.

1. The report was produced following modelling and engagement with tenants, including the TACT board, two members of which were present at the meeting and a wider consultation which received 291 responses.
2. The plan addressed challenges arising from inflation, increased construction costs, energy prices, and borrowing.
3. The aim was to ensure a housing service that was fit for purpose, providing tenants with good, warm, safe, and secure homes that were economical to run and met regulatory standards.
4. The report set out plans to protect the repairs and maintenance programme, retrofit and decarbonisation plans, and the strategy for building or acquiring further council homes.
5. Savings of approximately £1.1 million were identified within the budget.
6. The proposal followed the rent setting guidelines from the Social Housing Regulator of CPI plus 1%, equating to 4.8% for the period.
7. Risks facing the HRA in the medium term were outlined, primarily relating to macroeconomic factors and central government funding.
8. A verbal update would be provided to Cabinet regarding a change to one of the savings recommendations following a request from the TACT board.

The committee was asked to comment on the proposals within the attached cabinet report, ref CAB3540, which was to be considered by the cabinet at its meeting on 12 February 2026. The committee proceeded to ask questions and debate the report. In summary, the following matters were raised.

1. A question was asked regarding the table on page 44 regards “loss of funding”, as it was felt that the numbers did not appear to add up correctly.
2. Further clarification was sought regarding paragraph 11.9 and the full stock condition survey, and whether any unexpected findings were anticipated.
3. Clarification was requested regarding paragraph 11.66 and the wastewater treatment plant upgrades, specifically which site was referred to in this paragraph.
4. Clarification was requested on whether the council was moving towards full cost recovery for sewage treatment, the progress in rationalising resident charges, and if the issues regarding charging at Hobbs Close would be addressed.
5. Clarification was sought regarding paragraph 1.6 and how the feedback from tenants, including those who had exercised Right to Buy, had been considered.
6. A question was asked regarding paragraph 11.64 and EPC targets, and how much the needs of tenants for warmer homes and lower costs were considered in prioritisation decisions.
7. It was asked whether the challenges regarding energy improvements and the Social Housing Decarbonisation Fund (SHF) Programme Wave 3 funding had been discussed at a recent the Cabinet Committee: Housing meeting.
8. Clarification was sought regarding the change in approach to Department for Energy Security and Net Zero (DESNZ) funding, noting that the proposal was for the council to self-fund.
9. Clarification was requested on how many of the confirmed programme of 672 homes for solar panel and battery installation had been completed.
10. A question was asked regarding the target of 87% of stock to meet EPC-C by March 2028, and what percentage of tenants were resistant to retrofit schemes and what was a realistic target.
11. Clarification was sought regarding paragraph 11.8 and the average social rent for new tenancies.
12. A question was asked regarding paragraph 11.9 and the stock condition survey availability in mid-2026, and whether this should feed into the 2027/28 planning process rather than 2026/27.

These points were responded to by Councillor Reach, Cabinet Member for Good Homes and Simon Hendey, Strategic Director accordingly.

RESOLVED:

1.    That the report be noted.

2.    That whilst the committee had no specific recommendations to forward to Cabinet, that cabinet considers the committee’s comments raised during the discussion of the item.