URL: https://northumberland.moderngov.co.uk/ieDecisionDetails.aspx?ID=337

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: The report presents to Cabinet, the updated Budget 2025-26, Medium Term Financial Plan 2025-29 and 30 year Business plan for the Housing Revenue Account.

Content: RESOLVED that:   1.1      Cabinet approve the Housing Revenue Account 2025-26 budget as detailed within Appendix 1, which will reduce the balance on the HRA reserve from £24.379 million at 31 March 2025, to £16.030 million at 31 March 2026; and note the indicative budgets to 2028-29 which will reduce the balance of the HRA reserve to £12.178 million;??   1.2      Cabinet note that from 1 April 2025, 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 1.70% plus 1.00% with recoverable service charges also rising by CPI plus 1.00% for the period 1 April 2025 to 31 March 2026;   1.3      Cabinet approve the increase of 2.70% for housing rents from 1 April 2025 in line with the Government rent standard;?   1.4      ?Cabinet approve the increase of 2.70% for housing service charges from 1 April 2025;   1.5      Cabinet approve the Non-Recurrent Growth Item of £1.000 million for additional resources to tackle the backlog in the turnaround of void properties (detailed in point 6.11);   1.6      Cabinet approve the Non-Recurrent Growth Item of £0.600 million for demolition costs of unused dwellings (detailed in point 6.11);   1.7      Cabinet approve the Non-Recurrent Growth Item of £0.400 million for additional consumable materials (detailed in point 6.11);   1.8      Cabinet approve the use of £0.400 million from the Rent Hardship Fund Reserve, to contribute to the additional non recurrent growth. (detailed in point 6.6);   1.9      Cabinet approve the use of £2.003 million from the HRA Reserve to fund non-recurrent growth and to contribute to the ongoing pressure within the budget and to ensure the HRA sets a balanced budget (detailed in point 6.13);   1.10    Cabinet approve the estimated pay inflationary increase for 2025-26 of 3.00% totalling £0.723 million, which includes the impact of increased national insurance contributions (detailed in point 6.9);?   1.11    Cabinet approve the Non-Pay Inflation Schedule for 2025-26 totaling £0.298 million (detailed in point 6.9);?   1.12    Cabinet approve the Recurrent Growth as follows:   a)       Additional Stock Condition Survey budget of £0.098 million from 2025-26 to cover cyclical costs of carrying out surveys on current properties to inform future capital expenditure (detailed in point 6.10).? b)       Additional budget of £0.100 million for electrical testing to comply with The Regulator of Social Housing (detailed in point 6.10);?   1.13    Cabinet approve the expenditure plan relating to £36.347 million which has been set aside over the 4-year period 2025-26 to 2028-29 in the HRA Capital programme to invest in Affordable Housing. Details are set out in Appendix 1;?   1.14    Cabinet approve the expenditure plan relating to £48.200 million which has been set aside over the 4-year period 2025-26 to 2028-29 in the HRA Major Repairs Programme to invest in continued improvement to the HRA housing stock. Details are set out in Appendix 1; and?   1.15    Cabinet note the indicative 30-year Housing Revenue Account business plan as detailed within Appendix 1.

Date of Decision: January 14, 2025