Agenda item

       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 making and ensure sound financial management of the HRA as part of the council’s overall control environment.