Issue details

The report seeks Executive approval for the revised budget for the Housing Revenue Account 2023/24, the base budgets and the rent increases for 2024/25.

The Executive recommended, and the Council approved, in February 2023, the base budget and rent increase for 2023/24, for Housing Revenue Account (HRA) services.

The report sets out some revisions to the Housing Revenue Account revised budget for 2023/24 and base budget for 2024/25 along with the capital programme and financing for the years 2023/24 to 2027/28.  The report examines the issues affecting the Housing Revenue account including rent changes with effect from 01 April 2024.  In particular it highlights the increased expenditure needed to maintain the Council’s housing stock in the next 2 years and meet the LAHF commitments to deliver three homes for Afghan families and one home for temporary accommodation to be held in the Housing Revenue Account.  This will mean that we will not be able to fully continue with our debt repayment put aside in these years.  However, any surpluses that do arise will be considered for this purpose.

Council budgets are susceptible to change in the level of expenditure and income caused by factors inside and outside the Council’s control. A risk assessment has been carried out to indicate the effect on housing balances of changes in the level of expenditure and income. This can be used to estimate the account balances needed to provide a prudent level of reserves and a working balance.  Actions continue to be taken by officers to reduce expenditure where possible.  There will also be increased budget monitoring introduced for this period.