Issue - meetings

Housing Revenue Account Capital and Revenue Budgets 2024 / 2025

 

 

Meeting: 13/02/2024 - Cabinet (Item 13)

13 Housing Revenue Account Capital and Revenue Budgets 2024/25 pdf icon PDF 2 MB

Minutes:

Background:

 

This report provided details of the proposed Housing Revenue Account (HRA) capital and revenue budgets for 2024/25 including rent, garage rent and service charge levels. The report gave a breakdown of the factors taken into account when formulating the budgets. The report also provided an update on the HRA Business Plan in accordance with the requirement to ensure the Plan met the Government’s fit for purpose criteria. The report stated that tenants had been informed of the proposals, as set out in section 18 of the report.

 

The Regeneration, Culture and Environment Overview and Scrutiny Committee had considered the report on 23 January 2024 and its comments were set out at section 19 of the report. A Diversity Impact Assessment had been carried out on the proposed budgets, as set out in Appendix F to the report.

 

Decision

number:

 

Decision:

 

33/2024

The Cabinet recommended the following to full Council for approval:

 

a)  A proposed social rent increase of 7.7% (CPI of 6.7 plus 1%) for the social rent housing stock as set out in Appendix A (based on 52 collection weeks) with effect from 1 April 2024. All new tenancies issued during 2024/25, to be set at either the formula rent or rent cap for social rent dwellings, whichever is lower.

 

b)  A proposed affordable rent increase of the lower of Local Housing Allowance (LHA) rate or 7.7% (CPI of 6.7 plus 1%) for the affordable rent properties as set out in Appendix B (based on 52 collection weeks) with effect from 1 April 2024. All new tenancies during 2024/25 to be set at either 80% of market rent or the LHA rate for affordable rent dwellings, whichever is lower.

 

c)  A proposed rent increase of 7.7% to be applied to all garage tenure types with effect from 1 April 2024 as stated in section 6 of the report.

 

d)  That the service charges increases/decreases as set out in Appendix C of the report for 2024/25 be approved.

 

e)  That the revenue budget for the HRA service for 2024/25 as per Appendix D be approved. 

 

f)    That the capital budget for the HRA service for 2024/25 as per 10.5.3 of the report be approved.

 

g)  That the provision for the estimated repayment of debt based on annuity-based payment of £0.425m, on the HRA’s outstanding debt for 2024/25 be approved.

 

h)  To delegate authority to the Director of Place or Assistant Director, Culture and Community to agree weekly rental values presented by the Head of Tenant Services for any in-year completed HRA acquisitions and/or new builds during 2024/25.

 

i)    That Members approve the 30-year HRA Business Plan model as attached at Appendix E.

 

 

Reasons:

 

The Council is required to carry out a review of rents and notify tenants not less than 28 days prior to the proposed date of change. The Council is required under the Local Government and Housing Act 1989 to ensure that the Housing Revenue Account does  ...  view the full minutes text for item 13