Issue - meetings

Report of the Corporate Director of Finance and Resources (S151 Officer). To be presented by the Cabinet Member for Housing & Planning (Deputy Leader).

DECLARATIONS OF INTEREST FOR THIS ITEM:

None

RESOLVED:

That Cabinet:

1. Noted the HRA’s current financial position as set out in this report, which set the foundations for the full draft budget for 2026/27 and the 2026/27–2030/31 Business Plan.
   
   
2. Noted that the final HRA 2026/27 Budget and 2026/27–2030/31 Business Plan would be presented to Cabinet on 10 February 2026 to be recommended for approval to the Full Council meeting taking place on 2 March 2026.
   
   

Reasons for Decision

The Council was legally required to set a balanced HRA budget and have a sustainable HRA Business Plan to ensure that it was able to manage and maintain its homes, provide services to tenants and leaseholders, and build much-needed new Council homes.

Alternative Options Considered

No alternative options were considered.

The Cabinet Member for Finance and Corporate Services introduced the report.

It was explained that the Council had prioritised affordable housing, delivered thousands of new council homes at council rents, and renovated thousands more to ensure they were fit for the future. It was stressed that the Housing Revenue Account spend was directed towards these priorities of building affordable, high-quality homes for residents and investing in our communities.

However, it was stressed that the Housing Revenue Account faced significant pressure from inflation and high interest rates, which drove up the cost of building and repairs. It was explained that the Council had taken steps to ensure that the Council achieved its priorities while keeping the budget sustainable for the long term.

Following questions from Councillor Connor, the following information was shared:

·       It was explained that the Council had a programme in place for heat pump replacement in Council owned housing, which was being funded through a combination of the Housing Revenue Account and through grant funding. It was explained that a combination of works was being undertaken to do this. It was explained that the Council had the aim to retrofit all Council housing to decency standards by 2027/28.

RESOLVED:

That Cabinet:

1. Noted the HRA’s current financial position as set out in this report, which set the foundations for the full draft budget for 2026/27 and the 2026/27–2030/31 Business Plan.
   
   
2. Noted that the final HRA 2026/27 Budget and 2026/27–2030/31 Business Plan would be presented to Cabinet on 10 February 2026 to be recommended for approval to the Full Council meeting taking place on 2 March 2026.
   
   

Reasons for Decision

The Council was legally required to set a balanced HRA budget and have a sustainable HRA Business Plan to ensure that it was able to manage and maintain its homes, provide services to tenants and leaseholders, and build much-needed new Council homes.

Alternative Options Considered

No alternative options were considered.