Agenda item

Report to Follow

Cabinet received a report giving an update on the updated Housing Revenue Account Business Plan for 2026/27 to 2056/57 setting out the Council’s long-term vision and financial strategy for managing and maintaining council housing.  The Plan provided a clear framework to ensure tenants homes remained safe, high-quality, and affordable, while supporting the delivery of new social and affordable housing to meet the needs of the community.

Members were pleased to note the significant investment programme including £148 million investment into existing stock over the next five years, and £745 million over the next 30 years.

£457 million was also allocated for new housing, with 281 homes currently under construction and a net increase of 1,107 homes projected over the lifetime of the plan.

The Portfolio Holder for Housing drew Cabinet’s attention to two amendments to the HRA Business Plan that was published for the purpose of this meeting.

On page 48 of the pack, there were two values missing from the Income bullet point which should read ‘rental income includes the impact of rent flexibility on relets and rent convergence with a £1 per week limit. Service charges and other income remain in line with inflation, if this were not to be approved, the 2026/27 year end reserves position would be £209K lower and the savings target for 2027/28 £681K higher.’

On page 49 of the pack, again, on the Interest bullet point, the last sentence had two figures represented by crosses and it should read as ‘The average interest rate for the period 2025/26-2030/21 is 3.49% and 3.75% for new loans.’

The Portfolio Holder for Resources and Performance advised that whilst the Council had ambitious plans for its homes, the HRA faced some challenges with higher inflation, repair costs and regulatory compliance.

It was RESOLVED:

1.    That the Housing Revenue Account Business Plan 2026/27-2026/57 as seen in Appendix A be approved;

2.    That the approach to borrowing principles as set out in the Business Plan and summarised in paragraph 4.8 be approved;

3.    That the minimum level of balances for the HRA Business Plan, which is set at £10Million be noted;

4.    That the assumptions used for the Medium-Term Financial Strategy and that the growth and savings proposals (Appendix B & C) are incorporated into the 2026/27 budget be approved;

5.    That the Capital Programme assumptions contained within the plan for the housing stock and new build properties be approved and that these be incorporated into the 2026/27 Capital Strategy;

6.    That the financing of the Capital Programme for inclusion in the Capital Strategy including prudential borrowing to fund capital projects in 2026/27 of £35.6Million and re-financing of internal debt of 7Million be approved.  Future years borrowing requirements will be considered annually in line with anticipated expenditure.

7.    That the significant risks and uncertainties affecting the national housing landscape be noted and that delegated authority be granted to the Strategic Director (RP), in consultation with the Portfolio Holder for Housing and Housing Development, to make minor amendments as necessary to safeguard the financial viability of the Plan.