Decision details

RESOLVED that:-

1.             Cabinet approve the Housing Revenue Account 2024-25 budget as detailed within Appendix 1, which will reduce the balance on the HRA reserve from £28.175 million at 31 March 2024, to £19.193 million at 31 March 2025; and note the indicative budgets to 2027-28 which will reduce the balance of the HRA reserve to £13.708 million;

2.             Cabinet note that from 1 April 2024, social housing rent will be increased by Consumer Price Index (CPI) plus 1.00% as per the previously agreed Rent Standard. The budget detailed in Appendix 1 assumes that rents will rise by CPI 6.70% plus 1.00% with recoverable service charges also rising by CPI plus 1.00% for the period 1 April 2024 to 31 March 2025;

3.             Cabinet approve the increase of 7.70% for housing rents from 1 April 2024 in line with the Government rent standard;

4.             Cabinet approve the increase of 7.70% for housing service charges from 1 April 2024;

5.             Cabinet approve the Non-Recurrent Growth Item Hardship Fund of £0.350 million for 2024-25 to support NCC tenants who may, due to their income, not be eligible to receive any financial assistance through existing benefits (Housing Benefit/Universal Credit/Discretionary Housing Payment) (detailed in points 6.5 & 6.11);

6.             Cabinet approve that any unspent balance in relation to the Hardship Fund for 2023-24, can be carried forward as an earmarked reserve into 2024-25 (detailed in point 6.5) and added to the 2024-25 in-year budget allocation;

7.             Cabinet note the indicative 30-year Housing Revenue Account business plan as detailed within Appendix 1;

8.             Cabinet approve the estimated pay inflationary increase for 2024-25 of 4.00% totalling £0.447 million (detailed in point 6.10);

9.             Cabinet approve the Non-Pay Inflation Schedule for 2024-25 totalling £0.280 million (detailed in point 6.10);

10.          Cabinet approve the Recurrent Growth as follows:

a)       Housing Disrepair of £0.275 million from 2024-25 to cover the costs of housing disrepair mitigation and resolution; and note that the budget will be reduced by £0.150 million after 5 years (detailed in point 6.11).

b)       Additional staffing budget of £0.367 million from 2024-25 (detailed in point 6.11).

c)       Additional budget for consumable materials for void properties of £0.159 million from 2024-25 (detailed in point 6.11).

11.      Cabinet note the Recurrent Saving in relation to the Introduction of phased Service Charges for Sheltered Housing tenants, with estimated additional income of £0.120 million in 2024-25 (50.00%), £0.180 million in 2025-26 (75.00%) and £0.240 million 2026-27 (100.00%) as agreed within the budget and MTFP 2023-24 (detailed in point 6.12);

12.      Cabinet note and approve the expenditure plan relating to £41.434 million which has been set aside over the 4-year period 2024-25 to 2027-28 in the HRA Capital programme to invest in Affordable Housing. Details are set out in Appendix 1; and

13.      Cabinet approve an amendment to the Housing Rent policy, to enable re-let of HRA properties at Formula Rent from April 2025 (detailed in point 6.29).