Agenda item

To consider and approve the Housing Revenue Account Rents and Service Charges 2025-26.

Further to Minute No. 90 of the meeting of the Cabinet held on 16 December 2024, consideration was given to the report which sought approval for the Housing Revenue Account Budget for 2025/26 and proposed increases in housing rents, non-dwelling rents, District Heating charges and other service charges. It was recommended that Council dwelling rents be increased by 2.7%

The Housing Revenue Account (HRA) 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 proposed 2025/26 HRA Business Plan incorporated the Council’s commitments to continue and extend the Council’s Housing Delivery Programme, alongside significant new investment to support decency and thermal efficiency in existing council homes. The Plan included provision for £979m investment in the housing stock over 30 years, including approximately £35m additional investment over the next five years compared to the previous year’s position. This was alongside continuing to fund day-to-day housing management and repairs and maintenance costs. At the same time the Housing Delivery Programme would continue beyond 1,000 homes. The existing funding provision of £113m for hundreds more Council homes by 2027 would be supplemented with an additional £37m to begin to build the pipeline of schemes beyond 2027.

Borrowing was required in years 3 to 6 in order to support necessary investment and provision for servicing that level of debt was built into the 30 year Plan. The Business Plan had been modelled to ensure healthy balances were maintained in all years.

Alongside providing the draft HRA budget for 2025/26, the report also recommended increases in housing rents, non-dwelling rents, District Heating charges and other service charges for 2025/26. It was recommended that Council dwelling rents were increased by 2.7%, equivalent to CPI+1%, in line with Government policy. There were 12,668 tenancies in receipt of full Housing Benefit or full Universal Credit (UC) who would not be directly affected by an increase in rent. 2,276 tenancies received part Housing Benefit and any increase in rent would be part covered by benefit payments.

It was also proposed that shared ownership rents be increased by 3.2%; charges for communal facilities, parking spaces, cooking gas and use of laundry facilities be increased by 2%; District Heating unit charges be set at 13.09 pence per kwh.

The Cabinet report and appendices were attached to the covering report and included extensive detail on the proposals.

Questions in the meeting were on topics such as district heating, the language around benefits ring-fencing money for community facilities, communal bin storage, HRA funding being used for Rothercare and the distribution of HRA funding across the wards.

Councillor Allen confirmed she would provide Councillor Bennett-Sylvester with the information on Rothercare. She also confirmed that she would be happy to attend the Improving Places Select Commission to discuss the neighbourhood funding arrangements.

Resolved:

That Council:-

1.    Approve the proposed 2025/26 Base Case Option 2 for the HRA Business Plan.

2.    Note that the Business Plan will be reviewed annually to provide an updated financial position.

3.    Agree that Council dwelling rents are increased by 2.7% in 2025/26 (Option 2).

4.    Agree that the Council should retain the policy of realigning rents on properties at below formula rent to the formula rent level when the property is re-let to a new tenant.

5.    Agree that shared ownership rents are increased by 3.2% in 2025/26.

6.    Agree that charges for communal facilities, parking spaces, cooking gas and use of laundry facilities are increased by 2% in 2025/26.

7.    Agree that charges for garages are increased by 10% in 2025/26.

8.    Agree that the District Heating unit charge per Kwh is set at 13.09 pence per kwh.

9.    Agree that the decision to reduce the price of District Heating Charges further during 2025/26 be delegated to the Assistant Director of Housing in conjunction with the Assistant Director of Financial Services following consultation with the Cabinet Member for Housing. The delegation would only be used to respond to a change in Government policy or a significant change in the Ofgem price cap that has the effect of necessitating a lower unit price.

10.Approve the draft Housing Revenue Account budget for 2025/26 as shown in Appendix 6.

Mover: Councillor Allen                           Seconder: Councillor Alam

Councillor Bennett-Sylvester and Councillor Ryals declared a disclosable pecuniary interest in Minute No. 100 (HRA Business Plan, Rent Setting and Service Charges 2025-26) on the grounds of being a Council tenant and were granted a dispensation to vote.

Councillor Cusworth and Councillor Williams declared a non-pecuniary interest in Minute No. 100 (HRA Business Plan, Rent Setting and Service Charges 2025-26) on the grounds that family members were Council tenants. Both remained in the chamber and voted on the matter.