Agenda item

To consider the Housing Revenue Account (HRA) Business Plan review 2023.

The Executive considered a report in respect of the Housing Revenue Account (HRA) Business Plan review 2023.

It was RESOLVED:

1.          That the 2023 revision of the Housing Revenue Account (HRA) 30 year Business Plan, as set out in the report and its appendices, be approved.

2.          That the revised approach to borrowing principles, as set out in Paragraph 4.3 of the report, be approved.

3.          That the level of balances for the HRA Business Plan, set as a minimum £10Million (uplifted for inflation for future years), and as set out in Paragraph 4.4.14 of the report, be noted.

4.          That the assumptions used for the Medium-Term Financial Strategy (as set out in Paragraph 4.4.1 of the report) and the growth and saving proposals (as set out in Paragraph 4.4.3 of the report) be incorporated into the 2024/25 budget.

5.          That the Capital Programme assumptions contained within the report be approved for the housing stock and new build properties and incorporated into the 2024/25 budget.

6.          That prudential borrowing to fund capital projects in 2024/25 of £18.8Million be approved, and that future years be considered annually in line with future anticipated expenditure.

7.          That additional HRA revenue budget of £176,000 in 2023/24 be approved to extend fixed term contracts for staff to the end of the 2023/24 financial year (as set out in Paragraph 4.4.5 of the report), and it be noted that this is within current Executive delegated limits.

8.          That the Trade Unions and staff be consulted on the key messages contained within the Medium-Term Financial Strategies and more specifically when drawing up any proposals where there is a risk of redundancy.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.

The Executive considered a report in respect of the Housing Revenue Account (HRA) Business Plan review 2023.

In the absence of the Portfolio Holder for Resources and Transformation, the Portfolio Holder for Housing & Housing Development advised that the HRA 30 Year Business Plan outlined the Council’s ambitions for the development of new social, affordable, good quality homes, maintenance of its existing social housing stock and provision of its tenancy management services, as funded through the ringfenced HRA income.  The Council’s HRA Business Plan was originally approved by the Executive in 2014 and had been reviewed frequently to ensure that any changes in approach to financial strategy, policy or direction of travel for the Council were reflected.

The Portfolio Holder for Housing & Housing Development stated that the report contained a review of key assumptions and material internal or external changes, revenue and capital investments for 2024/25, with the impact of proposed changes clearly identified. The proposals sought to ensure that the Council could maintain its assets, fulfil new regulatory and statutory requirements and provide ‘More Social, Affordable and Good Quality Homes’.

The Portfolio Holder for Housing & Housing Development drew attention to the key headlines of the Business Plan which included:

·             Significant growth proposals both capital (£423Million over the first 11 years, with the majority of this invested in existing and new housing stock) and revenue (£3.8Million in 2024/25);

·             Increased borrowing to support capital spend in response to high inflation, a rent cap in the last year, increased regulatory requirements and lasting impacts from the Covid pandemic;

·             Re-financing some existing debt (not paying off as in the previous Plan) and recognising that large savings would be needed to balance the plan, especially in years 1 to 11; and

·             Acknowledgement of the higher risk in the first 10 years, due to increased borrowing and savings targets, but recognition that investment in assets and an increase in the number of Council homes was vital for tenants’ wellbeing and a growing resident base.

The Executive noted that, due to uncertainty surrounding changes to Government legislative and regulation, such as the forthcoming revision of the Consumer Standards by the Regulator of Social Housing (RSH), the Council would need to revisit the HRA Business Plan in the Autumn of 2024 to assess future plans and spending commitments.

It was RESOLVED:

1.          That the 2023 revision of the Housing Revenue Account (HRA) 30 year Business Plan, as set out in the report and its appendices, be approved.

2.          That the revised approach to borrowing principles, as set out in Paragraph 4.3 of the report, be approved.

3.          That the level of balances for the HRA Business Plan, set as a minimum £10Million (uplifted for inflation for future years), and as set out in Paragraph 4.4.14 of the report, be noted.

4.          That the assumptions used for the Medium-Term Financial Strategy (as set out in Paragraph 4.4.1 of the report) and the growth and saving proposals (as set out in Paragraph 4.4.3 of the report) be incorporated into the 2024/25 budget.

5.          That the Capital Programme assumptions contained within the report be approved for the housing stock and new build properties and incorporated into the 2024/25 budget.

6.          That prudential borrowing to fund capital projects in 2024/25 of £18.8Million be approved, and that future years be considered annually in line with future anticipated expenditure.

7.          That additional HRA revenue budget of £176,000 in 2023/24 be approved to extend fixed term contracts for staff to the end of the 2023/24 financial year (as set out in Paragraph 4.4.5 of the report), and it be noted that this is within current Executive delegated limits.

8.          That the Trade Unions and staff be consulted on the key messages contained within the Medium-Term Financial Strategies and more specifically when drawing up any proposals where there is a risk of redundancy.

Reason for Decision:  As contained in report.

Other Options considered:  As contained in report.