Issue - meetings

Report from the Strategic Director for Adult Care, Housing and Public Health.

Recommendations:

That Cabinet recommends to Council to:

1.    Approve the proposed 2023-24 Base Case Option 1 for the HRA Business Plan.

2.    Review the Plan annually to provide an updated financial position.

Consideration was given to the report which explained that the Council was required to produce an Housing Revenue Account (HRA) Business Plan setting out its investment priorities over a 30 year period.  The report also provided a detailed technical overview of the current position and the reason for changes to  ...  view the full minutes text for item 123

To consider a report setting out the Council’s HRA Business Plan and its investment priorities over a 30-year period, providing an overview of the current position and the reason for changes to the Business Plan.

Cabinet Portfolio: Housing

Strategic Directorate: Adult Care, Housing and Public Health

The Chair invited the Cabinet Member for Housing to introduce a report which provided a detailed technical overview of the current position and the reasons for changes to the Housing Revenue Account Business Plan. The Cabinet Member outlined that this report should be considered in conjunction with Housing Revenue Account Rents and Service Charges report 2023/24.

Also in attendance were the Strategic Director for Adult Care, Housing and Public Health, the Assistant Director for Housing and Interim Head of Services.

The report detailed that the Housing Revenue Account recorded all expenditure and income relating to the provision of Council housing and related services, and the Council was required to produce an HRA business plan setting out its investment priorities over a 30 year period.

The overall approach was to make savings where it was feasible to do so and invest in future new affordable housing and to position the housing service so it is best placed to respond to ongoing inflationary pressures and future challenges as they arrived.

It was outlined that the current business plan took account of known costs for housing growth, housing management and repairs and maintenance. To date, a total of 530 homes were already completed or contracted for completion by March 2026. It was proposed a further £115.7m would be invested to deliver more council homes by 2025-26. Over the short to medium term forecast, the business plan was operating at or around the minimum balance; however, this would increase to a surplus of £9.452m by year 30 of the plan.

Details of the planning assumptions were outlined in the report, including options for rent and service charge increases. Base option 1 was recommended for approval.

Having had a full discussion of proposals in its consideration of the Housing Revenue Account Rents and Service Charges report, no further questions were raised by the Board. The Chair thanked the Cabinet Member and Officers for their attendance.

Resolved:

1)    That Cabinet be advised that the recommendations be supported.

“That Cabinet recommends to Council to: -

1.    Approve the proposed 2023-24 Base Case Option 1 for the HRA Business Plan.

2.    Review the Plan annually to provide an updated financial position.”