Issue - meetings

To receive a report from the Director of Assets and the S.151 Officer.

The Chairman invited Cllr Phil Alford, Cabinet Member for Housing, Strategic Assets, and Asset Transfer, to present a report recommending that Council approve the Housing Revenue Account (HRA) business plan, budget, and associated housing funding decisions.

Cllr Alford proposed a motion to approve the recommendations set out in the report, which was seconded by Cllr Laura Mayes, Deputy Leader of the Council. Details were provided about the capital programme, including the proposed 2.7 percent social dwelling rent increase. Cllr Alford reported that a number of recent changes in government policy had been reflected in the new business plan, including a reduction in the level of discount available to tenants who wanted to take advantage of the Right to Buy scheme. He also highlighted that the maintenance budget had increased by £2.49 million and that the business plan had delivered 208 homes in a previous phase, 173 in the current phase and had a further 40 in development. There were an additional 533 in the pipeline, so the council was on track to deliver its overall target of 1,000 new homes.

The Chairman then invited comments from group leaders.

Cllr Richard Clewer, Leader of the Council, emphasised that it was important for the council to engage closely with central government on council housing and reported that there would be a further meeting on the subject the following week.

Cllr Ian Thorn, Leader of the Liberal Democrat Group, welcomed the report. He asked what had impacted delivery of the original target and why it was felt that it would not impact future delivery.

Cllr Jon Hubbard, on behalf of the Independent Group welcomed a recent report made to Cabinet about the HRA.

Cllr Ricky Rogers, Leader of the Labour Group, welcomed the proposals and stressed the importance of ensuring that contractors had sufficient capacity to deliver the housing targets.

The Chairman then opened the item to general debate.

During the debate a number of points were made, and the report was broadly accepted. The additional funding that the government were investing in affordable housing was welcomed. It was also noted that many housing associations and developers had downgraded their housebuilding targets to ensure that their debt ratios were complaint.

A comment was made expressing disappointment that the period to deliver the 1,000 council homes had been extended from 10 to 17 years. It was suggested that there might be a financial advantage in purchasing houses from developers using Section 106 funding. It was also stated that it would be a positive step if Stone Circle showed a similar level of transparency about their finances to the HRA.

Cllr Alford, as mover of the motion, responded to the comments made in debate. He explained that the council had adapted their approach to procuring houses to reflect a significant increase in the cost of building. Once the houses currently in the pipeline had been delivered, they would look adapt their procurement model so that there were a greater number of Section 106 funded acquisitions.  ...  view the full minutes text for item 14

       To receive a report from the Corporate Director, Resources (S151 Officer).

Resolved:

Cabinet recommends Council:

a)    To note the draft budget estimates and proposals.

b)    To approve the HRA Annual Revenue Budget for 2025/26 as described in the report and Appendix 1, subject to an in year review.

c)    To approve the increase of 2.7% (CPI+1%) to Dwelling Rents and Garage Rents for 2025/26

d)    To approve the HRA Capital Programme for 2025/26 as described in the report and Appendix 2, including the allocation of an additional £99m for the Council House Build Programme.

e)    To note the reviewed and updated assumptions in the HRA 30-Year Business Plan as detailed in the report.

f)     To approve authority to receive bespoke or targeted grants (if awarded) during the year.

Please note: This HRA annual budget report will form part of the budget setting reports at Cabinet and Full Council but will remain separate from the General Fund medium term financial strategy (MTFS) – providing a more detailed report for members with an aim of greater information and transparency.

Reason for Decision:

To enable the Cabinet to recommend to Council a balanced budget (capital and

revenue) for the HRA for 2025/26, and in so doing continue to provide high

quality services to tenants and investment in their homes.

To enable effective, transparent decision making and ensure sound financial

management of the HRA as part of the council’s overall control environment.

Cllr Phil Alford, Cabinet Member for Housing presented a report on the proposed Housing Revenue Account (HRA) annual revenue budget, including rent setting, and the capital programme for 2025/26. In addition, the report provided an update on the 30 year Business Plan Review.

Cllr Alford commented on the increase in rent charges, the new business plan model demonstrating a sustainable long-term HRA supporting the Council’s investment plans, updated Government regulations on Right to Buy, a reprofiled Council House Build Programme to meet prudential targets for the management of debt, potential areas of risk and strategies to mitigate the impact of additional costs.

The Leader noted that HRA’s across the county are currently under immense strain, not a trend being experienced in Wiltshire, although the cost of materials and labour needed to be closely monitored, along with the potential to apply for Government grants. Cllr Alford confirmed that the HRA was currently in a relatively healthy position.

Cllr Graham Wright, Chairman of the Overview and Scrutiny Management Committee and Cllr Pip Ridout, Chairman of the Financial Planning Task Group, reported that the Financial Planning Task Group considered this report at its meeting on the 30 January 2025, unfortunately, there was not time to consider this report in any depth or detail. They received a short presentation from the Director – Assets which covered the main issues. They welcomed the creation of a separate budget report for the HRA and would be recommending that after the election that scrutiny looks at the HRA in greater depth.

In response to queries about modern construction methods the Leader and Cllr Alford commented on the availability of reports on the build programme and the challenges and the impact of cost when using modern construction methods.

Resolved:

Cabinet recommends Council:

a)    To note the draft budget estimates and proposals.

b)    To approve the HRA Annual Revenue Budget for 2025/26 as described in the report and Appendix 1, subject to an in year review.

c)    To approve the increase of 2.7% (CPI+1%) to Dwelling Rents and Garage Rents for 2025/26

d)    To approve the HRA Capital Programme for 2025/26 as described in the report and Appendix 2, including the allocation of an additional £99m for the Council House Build Programme.

e)    To note the reviewed and updated assumptions in the HRA 30-Year Business Plan as detailed in the report.

f)     To approve authority to receive bespoke or targeted grants (if awarded) during the year.

Please note: This HRA annual budget report will form part of the budget setting reports at Cabinet and Full Council but will remain separate from the General Fund medium term financial strategy (MTFS) – providing a more detailed report for members with an aim of greater information and transparency.

Reason for Decision:

To enable the Cabinet to recommend to Council a balanced budget (capital and revenue) for the HRA for 2025/26, and in so doing continue to provide high quality services to tenants and investment in their homes.

To enable effective, transparent decision  ...  view the full minutes text for item 24