Agenda item

1. That the draft HRA Business 30-year Plan for 2025-26 to 2055-56 metrics shown in Appendix 3 and current 5 year projection at Appendix 1 of report CAB3523 be noted.

2. That the business plan pressures identified in the 2025/26 business planning exercise as outlined in paragraphs 11.41 to 11.51 of the report be noted, totalling £1.26m one off pressures and £1.2m ongoing pressures.

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, including potential options for rent convergence in line with government proposals.

4. That the allocation of £0.12m per annum to support upgrades to the asset and property management systems be approved, including reprofiling £0.02m from the one-off investment budget set in the 2023/24 business plan to cover initial preparatory costs in 2025/26, with clearer estimates of project management costs for 2026/27 to be included in the February budget report.

5. That a change in the calculation of interest on internal borrowing and lending between the General Fund and HRA be approved, namely to equalise the interest rate at the PWLB 3 month variable loan rate for both borrowing and lending as outlined at paragraphs 11.34 to 11.36 of the report.

6. That the assumption in the business plan for New homes to be aligned to the Housing Development Strategy be noted.

7. That the current financial viability assessment for new build from paragraph 11.16 to 11.22 of the report be noted.

8. That it be noted that quantified revenue savings of £0.892m, and capital savings of £0.25m outlined in Appendix 2 of the report, have been identified to assist with bridging the forecast gap in annual HRA budgets.

9. That the proposed assumptions and timescale for asset disposals outlined in paragraphs 11.62 to 11.64 of the report be noted.

10.  That it be noted that based on the September 2025 CPI figure of 3.8% that the average formula rent increase for 2025-26 for all affordable and social housing will be 4.8%.

11.  That it be noted that the government is consulting on rent convergence criteria which indicates preference to increase rents above CPI+1% for social rent tenants below formula rent levels, with announcement expected as part of the wider Budget on 26 November 2025.

12.  That the principle of full cost recovery in tenant service charges (other than sewage treatment works) in 2026/27 be approved.

13.  That it be noted that following implementation of options, 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 by the end of 2031/32

Councillor Reach introduced the report which set out proposals to ensure a sustainable HRA and to deliver the best value for tenants.  Cabinet noted that the report had been considered at The Scrutiny Committee on 13 November 2025 and the draft minute had been circulated to all those present at Cabinet.

Ian Tait spoke during public participation and his comments are summarised briefly below.

Ian Tait expressed concern regarding the financial viability and strategic direction of the council's affordable housing programme, noting that a major element of the HRA business plan was the goal to build 1000 new homes.  He highlighted the high development costs of recent schemes, such as Woodman Close, Sparsholt.  He also criticised the strategy of acquiring Section 106 sites as he believed that this merely shifted ownership from registered and charitable providers to the council without increasing the overall number of homes.

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

Councillor Lee

Councillor Lee welcomed the comprehensive business plan and budget, but was concerned about the future-proofing of the HRA business plan given growing costs, supply chain volatility, and environmental challenges. He specifically questioned whether the budget could be more ambitious in specifying low-carbon and biogenic products for repairs and maintenance which would help future-proof both the HRA and the housing stock against the increasing climate and nature crisis.

Councillor Horrill

Councillor Horrill highlighted that she had spoken at The Scrutiny Committee on 13 November 2025 on this report and requested that any unanswered questions be followed up by the Cabinet Member and Director.  She welcomed the proposals to consult tenants.  She was concerned about the lack of plans for new homes after 2032 and suggested this be discussed further at the Economy and Housing Policy Committee. Other concerns raised, included asking for an explanation for the rent table discrepancy concerning five-bedroom homes, inquiring about the expected number of void days, action to prevent ongoing issues with below standard retrofit work and the ongoing issue of cost recovery for sewage charges.

Councillor Reach responded to the comments made, including confirming that as he had suggested at The Scrutiny Committee, he would be discussing the possibility of an item considering new homes post 2032 with the chair of Economy and Housing Policy Committee.

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 2025-26 to 2055-56 metrics shown in Appendix 3 and current 5 year projection at Appendix 1 of the report be noted.

2.              That the business plan pressures identified in the 2025/26 business planning exercise as outlined in paragraphs 11.41 to 11.51 of the report be noted, totalling £1.26m one off pressures and £1.2m ongoing pressures.

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, including potential options for rent convergence in line with government proposals.

4.              That the allocation of £0.12m per annum to support upgrades to the asset and property management systems be approved, including reprofiling £0.02m from the one-off investment budget set in the 2023/24 business plan to cover initial preparatory costs in 2025/26, with clearer estimates of project management costs for 2026/27 to be included in the February budget report.

5.              That a change in the calculation of interest on internal borrowing and lending between the General Fund and HRA be approved, namely to equalise the interest rate at the PWLB 3 month variable loan rate for both borrowing and lending as outlined at paragraphs 11.34 to 11.36 of the report.

6.              That the assumption in the business plan for New homes to be aligned to the Housing Development Strategy be noted.

7.              That the current financial viability assessment for new build from paragraph 11.16 to 11.22 of the report be noted.

8.              That it be noted that quantified revenue savings of £0.892m, and capital savings of £0.25m outlined in Appendix 2 of the report, have been identified to assist with bridging the forecast gap in annual HRA budgets.

9.              That the proposed assumptions and timescale for asset disposals outlined in paragraphs 11.62 to 11.64 of the report be noted.

10.          That it be noted that based on the September 2025 CPI figure of 3.8% that the average formula rent increase for 2025-26 for all affordable and social housing will be 4.8%.

11.          That it be noted that the government is consulting on rent convergence criteria which indicates preference to increase rents above CPI+1% for social rent tenants below formula rent levels, with announcement expected as part of the wider Budget on 26 November 2025.

12.          That the principle of full cost recovery in tenant service charges (other than sewage treatment works) in 2026/27 be approved.

13.          That it be noted that following implementation of options, 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 by the end of 2031/32.