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Decision details

Housing Revenue Account budget proposals 2025/26

Decision Maker: Strategy and Resources Policy Committee

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

To seek approval for the proposed 2025/26 Housing Revenue Account (HRA) Budget, 30-year plan and 5-year capital plan. This report will subsequently be submitted to Full Council as part of the budget process.

Decision:

The Committee RESOLVED (6 members voting in favour and 3 against):

 

To recommend the following proposal to Full Council:

 

1. Agrees and recommends a rent and service charge increase of 2.7% effective from April 2024 to Full Council, applicable to HRA dwellings (general needs accommodation, supported housing and temporary accommodation).

 

2. Agrees and recommends the introduction of a new service charge for Grounds Maintenance, and to approve the implementation of a service charges Management Fee of 15% levied against applicable service charges.

 

3. Agrees and recommends the one-year revenue budget of £154m for 2025/26 set out in Appendix A1 to Full Council.

 

4. Authorises the Executive Director of Growth and Regeneration (to be replaced by the Executive Director of Housing in due course), in consultation with the Chair of the Homes and Housing Delivery Committee, to increase service charges by 2.7% with the exception of Heating and Water service charges which are to be increased by 10%, and garage rents by 10% and to approve the recalculated service charges and service charge statement based on actual costs for issue in September 2025.

 

5. Notes the key assumptions in the 30-year business plan and that the finance model is established within the agreed affordability principles summarised in Appendix A1, Paragraph 54.

 

6. Agrees and recommends the five-year capital programme 2025/26–2029/30 as detailed in Appendix A1 to Full Council.

 

7. Agrees and recommends the termination of the current contracts for the HRA to acquire homes from Goram at Dover Court and New Fosseway.

 

8. Approves the HIP and Development Programme set out in A2 and A3, subject to the following recommendations Nos 9 to 13:

 

9. Authorises the Executive Director of Growth and Regeneration (to be replaced by the Executive Director of Housing in due course) in consultation with Chair of the Homes and Housing Delivery Committee and s151 Officer to submit appropriate funding applications (including Homes England grants for development and any over the key decision threshold) to support the HRA budget and in particular the delivery of the HIP and Development Programme and if successful to:

a. accept funding and agree associated grant terms/conditions; and

b. utilise the funding for delivery of the projects set out in appendices HIP and Development Programme; and

c. where appropriate use HRA investment plan funds and or reserves to match fund projects to maximise funding opportunities.

 

10. Authorises the Executive Director of Growth and Regeneration (to be replaced by the Executive Director of Housing in due course) in consultation with Chair of the Homes and Housing Delivery Committee:

a. To approve the priority of the procurement projects set out in the HIP and take all steps required to select the appropriate procurement route and to procure and award the contracts in line with the Council’s procurement rules and regulations. Such authority to include decisions on matters which exceed the key decision threshold.

b. To adjust, remove and/or defer from within the current year’s programme (including those set out in Appendix A2 and Appendix I), any project(s) in order to fund the increased cost of any other project and/or to accommodate other changes in the programme subject to keeping within the approved overall budget.

 

11. Authorises the Executive Director of Growth and Regeneration (to be replaced by the Executive Director of Housing in due course) in consultation with Chair of the Homes and Housing Delivery Committee to:

a. approve the priority of the Development Programme projects set out in Appendix A3 and take all steps required to procure and award contracts (including goods, works and professional services).

b. during 2025/26 to deliver the Development Programme capital investment plans detailed in Appendix A3 (notwithstanding any individual project or contract may exceed the key decision threshold)

c. agree the allocation of financial expenditure on schemes within the Development Programme and to authorise changes to adjust, remove and/or defer schemes as required to deliver the general development proposals. (Such authority to include decisions on matters which exceed the key decision threshold).

d. to determine the appropriate nature/mix of tenure appropriate for each scheme.

e. to identify and allocate suitable sites and properties for the Development Programme, including both Council property and acquiring additional land or properties.

 

12. Authorises the reallocation and rearrangement of the above delegations from the Executive Director for Growth and Regeneration to the Executive Director of Housing on appointment, as required.

 

13. Authorises the Executive Director of Growth and Regeneration (to be replaced by the Executive Director of Housing in due course) in consultation with Chair of the Homes and Housing Delivery Committee (subject to approval by Full Council) to take all steps required to terminate the current contract for the HRA to acquire homes from Goram at Dover Court and New Fosseway.

 

Report author: Fiona Lester

Publication date: 04/02/2025

Date of decision: 03/02/2025

Decided at meeting: 03/02/2025 - Strategy and Resources Policy Committee

Accompanying Documents: