Issue - meetings

The report sets 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 sets out the recommended dwelling, non-dwelling rents and service and concierge charges to be applied from April 2026.

Cabinet Member for Finance, Corporate Services and Sustainability to report (report to follow)

The report sets 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 sets out the recommended dwelling, non-dwelling rents and service and concierge charges to be applied from April 2026.

The Director of Finance submitted a report which set out 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.

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 March 2025. This wass largely due to the contribution to capital of £3m being delayed until 2026/27. It should be 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 were either the recipient of Housing Benefit or Universal Credit, and it was 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 for comment.

RESOLVED that that the following recommendations be accepted and commended to Cabinet:

1. Forecast HRA outturn for 2025/26 (as per Appendix A)

2. Proposed HRA budget for 2026/27 (as per Appendix B)

3. Strategic estimates for 2026/27 to 2030/31 (as per Appendix D)

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

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

6. Proposal that service charges are increased by 2%.

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