Decision details

The Cabinet received a joint report of the Director of Finance and Executive Director of Place/Deputy Chief Executive that set out for the Housing Revenue Account (HRA), the detailed budget estimates for 2026/27, the strategic estimates for the four years 2027/28 through to 2030/31 and outturn estimate for 2025/26. The report also set out the recommended dwelling, non-dwelling rents and service and concierge charges to be applied from April 2026.

The submitted report detailed the HRA 2026/27 proposed original budget and the forecast outturn for 2025/26. The opportunity was also taken to present the provisional strategic budgets for 2027/28 through to 2030/31.

After taking all relevant issues into account, the projected financial position for 2025/26 was estimated to be a £3.723m positive variance when compared to the original budget forecast for 2025/26 approved at the Budget Council meeting, 6^th March 2025. This was largely due to the contribution to capital of £3m being delayed until 2026/27. It was noted that the revised forecast outturn would still see HRA expenditure at £0.757m greater than income, and reserves reducing as a result.

The 2026/27 position had been presented after allowing for a proposed increase in dwelling rents of 4.8%, an increase in non-dwelling rents in line with individual contracts, a nominal increase of 2% on service charges and the setting of Extra Care Housing concierge charges to fully recover costs. The majority of HRA tenants are either the recipient of Housing Benefit or Universal Credit, and it is assumed that the proposed increase in rents would not be an additional financial pressure to the majority of tenants.

The financial projections for the HRA over the period 2025/26 to 2030/31 showed an overall reduction in the level of balances from £22.173m at the start of 2025/26 to £15.628m at the end of 2030/31.

The HRA detailed budget for 2026/27, strategic estimates for the four years 2027/28 to 2030/31, and the outturn estimate for 2025/26, were presented to the Governance, Strategy and Resources Scrutiny Board on 28^th January 2026. The Scrutiny Board was content to commend the report to Cabinet without amendment.

Options/Alternatives considered:

Option one (preferred Option) – to approve the recommendations in the report.

Option two – to not approve the recommendations in the report.

Resolved:

That Cabinet approves and commends to Council, on 4^th March 2026:

1.    The forecast HRA outturn for 2025/26 (as per Appendix A, to the report).

2.    The proposed HRA budget for 2026/27 (as per Appendix B, to the report).

3.    The strategic estimates for 2026/27 to 2030/31 (as per Appendix D, to the report).

4.    The proposed increase to dwelling rents for all properties of 4.8%.

5.    The proposed increase to non-dwelling rents as per individual contracts.

6.    The proposal that service charges are increased by 2%.

7.    The proposal to set Extra Care Housing concierge charges to fully recover actual costs.