Agenda item

Budget 2023-24 and Medium-Term Financial Plan 2023-27 for the Housing Revenue Account

The report seeks Cabinet approval for the updated Budget 2023-24, Medium Term Financial Plan (MTFP) 2023-27 and 30-year Business plan for the Housing Revenue Account (HRA) (Appendix A).

Budget 2023-24 and Medium-Term Financial Plan 2023-27 for the Housing Revenue Account

The report asked for Cabinet’s approval for the updated Budget 2023-24, Medium Term Financial Plan (MTFP) 2023-27, and 30 year Business Plan for the Housing Revenue Account (HRA) (copy attached to the signed minutes as Appendix B.)

The Leader reported that Northumberland County Council’s proposed increase in Council Tax was 4.6% and that this included 2% for Adult Social Care.  This increase was well below inflation.  Account had been taken of savings and efficiencies across the Council, however front-line services would not be cut.  He added that he was deeply grateful to all staff who worked so hard across all services.

Three key priorities would be ensuring that Northumberland’s residents received value for money for their Council Tax by ensuring that services were delivered as well as they could be or improving them where necessary.  Addressing inequalities would aim to ensure that all residents, regardless of where they lived in Northumberland, would receive the same opportunities and chances.  Support for businesses would include free parking in town centres which it was hoped would further encourage visitors to Northumberland’s towns and help local businesses.

RESOLVED that the Cabinet

1.     Approve the Housing Revenue Account 2023-24 budget as detailed within Appendix 1, which will reduce the balance on the HRA reserve from £29.809 million at 31 March 2023, to £29.121 million at 31 March 2024; and note the indicative budgets to 2026-27 which will reduce the balance of the HRA reserve to £9.294 million.

2.     Note that from 1 April 2023, due to current rises in inflation, the government has imposed a rent cap on social housing rent increases of 7.0%, moving away for one year from the previously agreed Rent Standard of consumer price index (CPI) +1.0% (11.1%). The budget detailed in Appendix 1 assumes that rents will rise by the revised Government capped rate of 7.0%, with recoverable service charges rising by CPI 10.10% plus 1.0% for the period 1 April 2023 to 31 March 2024.

3.     Approve the increase of 7.0% for Housing rents from 1 April 2023.

4.     Approve the increase of 11.1% for Housing Service Charges from 1 April 2023.

5.     Approve the Non-Recurrent Growth item Hardship fund of £0.350 million for 2023-24 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 point 9 &16).

6.     Note the indicative 30-year Housing Revenue Account business plan as detailed within Appendix 1.

7.     Approve the estimated pay inflationary increase for 2023-24 of 4.0% totalling £0.418 million (detailed in point 15).

8.     Approve the Non-Pay Inflation Schedule for 2023-24 totalling £0.738 million (detailed in point 15).

9.     Approve the Recurrent Growth as follows:

        a.     Housing Disrepair of £0.250 million for 2023-24 to cover costs of housing disrepair mitigation/resolution (detailed in point 16).

        b.     Additional staffing budget of £0.424 million for 2023-24 (detailed in point 16).

10.   Approve the Recurrent Saving in relation to the Introduction of phased Service Charges for Sheltered Housing tenants, with estimated additional income of £0.100 million in 2024-25 (50.0%), £0.155 million in 2025-26 (75.0%) and £0.212 million 2026-27 (100.0%) (detailed in point 17).

11.   Note that £45.017 million has been set aside over the 4-year period 2023-24 to 2026-27 in the HRA Capital programme to invest in Affordable Housing. Details are set out in Appendix 1.