Issue details

The report seeks agreement from the Executive to recommend to Council the approval of the revised budget for the Housing Revenue account for 2024/25, plus the base budgets, fees and charges and rent increases for 2025/26.

The Executive recommended, and the Council approved, in February 2024 the base budget and rent increase for 2024/25 for Housing Revenue Account (HRA) services.

The report sets out some revisions to the Housing Revenue Account revised budget for 2024/25 and base budget for 2025/26.  The housing capital programme and financing for the years 2024/25 to 2028/29 is also included for information as this impacts on the revenue budget.  The report also proposes the increases in rents and fees and charges for 2025/26.

The report highlights the issues affecting the Housing Revenue Account.  In particular it highlights the increased expenditure needed to maintain the Council’s housing stock in the next 2 years.  This will mean that we will not be able to continue with our debt repayment put aside in these years.  However, any surpluses that do arise will be considered for this purpose.  Due to these pressures, increased budget monitoring has been introduced for this period and a specific HRA Opportunities Plan has been drawn up which contains actions that have been identified to help reduce net expenditure.

Council budgets are susceptible to change in the level of expenditure and income caused by factors inside and outside the Council’s control.  Scenario analysis has been carried out to indicate the effect on housing balances of changes in the level of expenditure and income. This has been included to support the need to maintain a prudent level of reserves and a working balance.